POWERED BY MOMENTUM MEDIA
SMSFs urged to target employer super
Self-managed superannuation funds (SMSFs) should look to be disruptors in the default superannuation space, according to Deloitte's chief edge officer, Peter Williams.
Addressing the opening plenary of SMSF Association annual conference in Adelaide, Williams pointed to the dominance of Australian Prudential Regulation Authority (APRA) regulated funds in the employer sponsored space as an area to be targeted.
He said SMSFs had already proven to be a disruptor in the superannuation space and should not be satisfied with an industry breakdown of one-third retail funds, one-third industry and one-third SMSFs.
He said in circumstances where APRA-regulated fund hold more than 80 per cent of the employer-sponsored super segment, this represented an opportunity for SMSFs which ought to be pursued.
Recommended for you
A major super fund has defended its use of private markets in a submission to ASIC, asserting that appropriate governance and information-sharing practices are present in both public and private markets.
A member body representing some prominent wealth managers is concerned super funds’ dominance is sidelining small companies in capital markets.
Earlier this month, several Australian superannuation funds fell victim to credential stuffing attacks, which saw a small number of members lose more than $500,000.
Small- to medium-sized funds have become collateral damage in an "imperfect" model for super industry levies, a financial institution has said.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
93.34 3 y p.a(%)
2
Global X GlobalX FANG+ ETF
36.96 3 y p.a(%)
3
GAM LSA Private Shares AU I
34.22 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.68 3 y p.a(%)
5
VanEck Video Gaming and eSports ETF (AU)
28.89 3 y p.a(%)
This seems a ridiculous notion. SMSF's are not a product, they are a structure. If a SMSF is the best solution for the member of a corporate super fund then by all means advise the client of this and clearly and accurately justify the replacement of the existing product. Isn't this an issue around advice? Haven't we moved on from 'targeting' people to sell them a product?
No wonder advisers who conduct themselves in this manner have a terrible reputation. They should have their licenses suspended for this sort of behavior.
Advisers also need to remember that employer super plans are often sponsored by the employer and have significant discounts to 'retail'. I doubt a SMSF will be price competitive for many.