Fintech and infrastructure company, Sargon, has launched an offering that aims to give investors the benefits of self-managed superannuation funds (SMSFs) while relieving them of the responsibilities and compliance burdens of acting as an SMSF trustee.
The Sargon Small APRA Fund (SAF) would be governed by the Australian Prudential Regulation Authority (APRA) instead of the Australian Taxation Office (ATO), like a regular SMSF, meaning Sargon would assume the responsibilities and operations that would usually fall to an SMSF member as trustee.
The product launch came as advisers increasingly look for alternatives to SMSFs as their clients age and compliance requirements increase.
According to Sargon head of business development, Andrew Rutter, this could suit members who didn’t have the desire or capacity to navigate regulatory requirements or financial decisions, especially as compliance demands on SMSFs become more complex.
Rutter also pointed to the estate planning provided by the Sargon SAF as a benefit for members who were in blended families. There could also be advantages for members living offshore who could face potential residency issues were they a trustee living abroad, as Sargon, who could act as trustee, was incorporated in Australia.
The Sargon SAF would be integrated with HUB24’s platform.
