The name ‘SMSF’ could be driving away potential trustees due to the connotations of increased administrative and regulatory burdens.
Michael Hutton, head of wealth management at HLB Mann Judd Sydney, said SMSFs were misnamed and a better title would be ‘Personal Super Fund’.
“The title ‘SMSF’, and the frequently used alternative name ‘DIY Super’, suggests that those who have such a fund must do all the investment, structuring and ongoing management work themselves, when the reality is this is not the case,” he said.
Hutton said many people believe the portfolio management and overall administration must fall to them as a trustee, but are unaware that advisers can help with things like contribution strategies, ensuring legislative and administration requirements are met and more.
“People with sufficient retirement savings shouldn’t allow concerns about the administration and regulatory requirements to over-ride all other considerations and prevent them from setting up a SMSF,” Hutton said.
The change of name to ‘Personal Super Fund’ would reflect the true benefits of SMSFs — that they are each set up to reflect the personal position and wishes of the trustees, he said.
