While accountants may be responsible for most Self-Managed Superannuation Fund (SMSF) start-ups, financial advisers appear to be delivering the bulk of advice, according to new research released by UBS and the Financial Services Council (FSC).
The research, contained within the UBS/FSC State of the Industry report, has revealed that more than two in five (43 per cent) of respondents with an SMSF reported that they had a formal arrangement with a financial adviser, while fewer than one third (29 per cent) had a formal arrangement with an accountant for financial advice.
Importantly, however, the survey also showed that more than one in 10 (16 per cent of respondents) reported they were not even sure if they had a formal arrangement to receive financial advice.
The research also found that SMSF service delivery was generally conducted by firms that also provided other financial advisory services, with around three-quarters of these being accounting and financial planning firms.
However it noted that less than 10 per cent of firms providing SMSF advice and administration services were originally started with that express purpose.
"The industry is typified by many small firms servicing 100 or less SMSFs that generally do not take advantage of technological innovations and automation," the research analysis said.
It suggested that building economies of scale in the financial advisory sector would likely lead to higher profit margins, making the industry a prime target for consolidation, which could in turn lead to increased growth in the financial services sector, as well as the value of assets held and the number of SMSFs.
