The SMSF Professionals' Association of Australia (SPAA) has welcomed efforts by the Australian Securities and Investments Commission (ASIC) to lift advice standards around self-managed superannuation funds (SMSFs).
However it has questioned why the particular competencies associated with providing advice on SMSFs was not included as part of the core proposals for new education standards for financial planners.
In comments made as part of its submission to ASIC on Consultation Paper CP216, SPAA stated that lifting education standards for SMSF advice should ensure financial planners and advisers had the skills required to inform SMSF trustees about the circumstances of their SMSFs.
SPAA also stated "it is surprising ASIC has not sought specific SMSF competencies in the updated RG 146 when it has concerns regarding the quality of disclosures made to potential SMSF trustees about the risks in being a trustee".
"We were surprised that ASIC had not suggested an additional specific topic in light of recent statements and research issued by ASIC that has shown concern for advice practices."
"In line with this SPAA has consistently argued that the proposed update of RG 146 for the training of advisors should include a specialist SMSF topic if advisers wish to provide advice on SMSFs."
SPAA stated in its submission that the inclusion of SMSF training under RG146 and its recognition as an area of specialist advice would lift the professionalism of planners, improve disclosures around SMSFs and increase consumer protection.
