Should the education requirement for SMSF advisers be raised?
The SMSF Association has called on the Government to introduce a self-managed super fund (SMSF) education requirement in order to increase the education standards required for SMSF advisers.
The recommendation was included in its education standards for financial advisers submission, which also recommended that advisers with at least 10 years of experience be given the opportunity to apply to have their competencies assessed by a tertiary education provider.
The association said raising education standards for SMSF advisers could increase their knowledge relating to specific and complex legislation and would discourage advisers who wished to give SMSF advice but had not undertaken specialist SMSF training.
“Introducing an SMSF education requirement would also limit advisers who are licensed but have poor knowledge of SMSFs and limited recourse borrowing arrangements from advising on the product,” the association said.
Raising the education requirement for SMSF advisers would also discourage “property spruikers” from entering the SMSF advice market, according to the SMSF Association, as the education requirement could be too high.
The SMSF Association highlighted the Australian Securities and Investments Commission (ASIC) Report 575, which suggested increasing the training requirements for SMSF advice providers.
The ASIC report, which was later supported by the Productivity Commission, stated the corporate regulator would be engaging in discussions with FASEA about a specific SMSF qualification to improve the quality of SMSF advice.
The SMSF Association noted that no guidance or framework was produced by Financial Advisers Standards and Ethics Authority (FASEA) for consultation prior to its ending, despite the urging of ASIC and the Productivity Commission “as far back as 2018”.
Recommended for you
The impact of identity theft and its threat to superannuation savings were highlighted in a case that went before the Federal Court at the end of 2023.
A recent NSW Supreme Court decision is an important reminder that while super funds may be subject to restrictive superannuation and tax laws, in essence they are still a trust and subject to equitable and common law claims, says a legal expert.
New research from the University of Adelaide has found SMSFs outperformed APRA funds by more than 4 per cent in 2021–22.
The SMSF Association has made a number of policy recommendations for the superannuation sector in its pre-budget submission to the government.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
225.31 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
120.73 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
72.47 3 y p.a(%)
4
Paradice Australian Mid Cap A
69.09 3 y p.a(%)
5
Global X Ultra Long Nasdaq 100 Complex ETF
61.94 3 y p.a(%)
