SMSF a potential target for royal commission

Speaking at the SMSFA national conference in Sydney, SMSFA head of policy Jordan George said the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry will put “ongoing scrutiny” on financial advice.

Mr George cautioned that this may extend to self-managed superannuation, even though it’s not included in the terms of reference.

“Royal commissions have a habit of going where they are not expected to,” he told conference delegates.

“As such it’s imperative we remain vigilant throughout the course of an inquiry that has the potential to have a lasting impact on the financial advice industry.”

Mr George added that the association will focus its efforts in 2018 on the “integration of social security and superannuation”, noting that home-owning couples with between $500,000 and $800,000 are not always better off in terms of retirement income than retirees with smaller super balances.

“This potential pitfall has come about because the lack of integration of superannuation and the age pension – the two key pillars of retirement savings in Australia,” he said.