SMSF Taskforce highlights ‘poor’ advice pockets: PIPA
The Property Investment Professionals of Australia (PIPA) has welcomed the findings of the regulator's SMSF (self-managed super fund) Taskforce, but says trustees still require specialised property investment advice.
PIPA acknowledged that the majority of financial advice provided to investors in relation to establishing an SMSF was found to be ‘adequate' by the Australian Securities and Investments Commission (ASIC).
The industry body noted however that there were also pockets of ‘poor' advice, particularly in regards to recommendations that investors set up an SMSF in order to invest in real property.
In relation to the taskforce findings, ASIC commissioner Peter Kell stated that regulatory action would be taken when examples of unlicensed SMSF advice or misleading marketing were identified.
"As ASIC would be fully aware, reports of Australian investors suffering at the hands of unscrupulous marketeers are all too common, and such cases have the potential to explode as interest in property investment via SMSFs continues to grow," PIPA chairman Ben Kingsley said.
He said financial planners and accountants lack understanding and formal education in relation to real property and require more training in relation to SMSF property selection.
"One, they can refer their client to someone who does have formal property investment advice accreditations — or they can undertake their own formal qualifications in order to deliver qualified property investment advice and a more all-inclusive service."
Analysing the SMSF Taskforce findings, the SMSF Professionals' Association of Australia (SPAA) cautioned the industry about reading too much into the report, as the research was based on reviews of 100 pieces of advice to low-balance SMSFs.
SPAA chief executive Andrea Slattery added the report related to those advisers who are "prolific spruikers of property and borrowing" and those who have had consumer complaints made against them.
"This is a very small subset of SMSF advice, only addressing the really risky end of advice to the SMSF industry," she said.
"What has to be remembered is that there are nearly half a million SMSFs, so this research should not be regarded as defining all professional advice in the SMSF space."
Recommended for you
Data and technology provider Novigi has acquired Iress’ superannuation consulting and managed services business from Apex Group.
AMP is to launch a digital advice service to provide retirement advice to members of its AMP Super Fund, in partnership with Bravura Solutions.
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
