Financial planners have shown an increasing willingness to provide administration services for self-managed superannuation funds (SMSFs) in response to rule changes regarding super introduced by the recent Federal Budget.
“Having digested the recent Budget, many financial planners have shown interest in theses administration platforms as a way of providing a full complement of in-house services which then deepens and broadens their client relationships,” Macquarie division director business banking Dean Firth said.
Previously the administrative work for SMSFs had been outsourced and Firth felt advisers were now seeing the provision of these services as a means to “beef up” the wealth accumulation component of their businesses in light of the simplified superannuation playing field.
Specifically the new opportunities that have been recognised by advisers stem from rule amendments brought about by the Budget concerning the abolition of reasonable benefit limits (RBLs).
“It’s a matter of where they may have been focusing their practice on providing pension advice around RBLs and the pension phase to their clients, the opportunity or focus now may be toward the administration side as opposed to the advisory side,” Macquarie senior manager business broking services Jason Phillips said.
He believes the change in direction by planners may force them to modify the practice structures in place to service their SMSF clients in the near future.
“It may lead them to look at perhaps their staff profile or employee profile. They may look more at administrative skills as opposed to advisory skills. They’d still have a strong focus on advisory, but their business growth maybe more in administration,” Phillips said.
