SPAA backs ASIC's push for improved SMSF advice
The Australian Securities and Investments Commission's (ASIC's) goal to improve the standard of advice given to prospective self-managed super fund (SMSF) trustees has been welcomed by the SMSF Professionals' Association of Australia (SPAA).
Outlining SPAA's stance on adviser training and education in its submission to ASIC on Consultation Paper CP216, Andrea Slattery, CEO of SPAA, said that this included ensuring SMSF advisers have competencies and skills to better inform potential trustees about the suitability of SMSFs to their circumstances.
"In line with this, SPAA has consistently argued that the proposed update of RG 146 for the training of advisers should include a specialist SMSF topic if advisers wish to provide advice on SMSFs," she said.
"This is the reason why SPAA has built an SMSF profession.
"We were surprised that ASIC had not suggested an additional specific topic in light of recent statements and research issued by ASIC that has shown concern for advice practices."
Slattery said that it was similarly surprising that ASIC had not sought specific SMSF competencies in the updated RG 146 when it had made public concerns regarding the quality of disclosures made to potential SMSF trustees about the risks in being a trustee.
"We believe that including an SMSF topic in RG 146, and recognising it as a specialist area of superannuation advice, will increase the level of professionalism and understanding of financial advisers who advise on the establishment and operation of SMSFs, leading to increased consumer protection," she said.
Slattery added that improved SMSF competencies of those providing advice to potential SMSF trustees would be a significant factor in improving SMSF disclosures.
"In particular, SPAA's SMSF professional accreditation program allows consumers to seek specialist SMSF advice to meet their needs," she concluded.
Originally published by SMSF Essentials.
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