SMSF Association calls for specialist training for advisers in QAR submission

The SMSF Association has argued that specialist training for professionals providing SMSF advice is “critical” to ensure the health of the sector.

In its submission for the Quality of Advice Review (QAR), the peak body said that - in line with the Productivity Commission’s 2018 Superannuation report, FASEA’s Financial Planners & Advisers Code of Ethics 2019 Guide and ASIC’s Report 575 - SMSF advisers should be required to complete specialist education.

 “All these reports highlighted that education improves the quality of advice and consumer outcomes. As such, an approved course or accreditation must be completed, and appropriate ongoing professional development maintained to retain that certification or accreditation,” SMSF Association John Maroney said.

“We believe requiring advisers to have specialist advice competencies in certain areas is important to lift the professionalism and integrity of the advice industry.”

Mr Maroney said that research conducted by the group found that 63 per cent of SMSFs were established on the back of a suggestion by a financial adviser, while 81 per cent of SMSFs use some form of adviser, highlighting that the quality of advice provided can affect the retirement savings of SMSF members.

“If members and trustees do not understand their obligations and the time required to manage an SMSF, this can not only result in severe penalties and sanctions, but a lack of effective engagement and management causing significant financial detriment,” he said.

In the submission, the SMSF Association also recommended that advisers have access to “essential” client ATO superannuation reports following the introduction of “multiple” total superannuation balance thresholds and the pension transfer balance caps implemented on 1 July and a comprehensive review of the sophisticated and wholesale investor regime.

Mr Maroney has also called for provisions such as the design and distribution obligations to not apply in establishing an SMSF, adding a new member or when starting a pension.

“The professionalisation of our sector must be duly recognised – a system where suitably qualified professionals provide the advice they are qualified to provide. Further, they should be able to apply their professional judgement in line with other professions,” he said.

“This involves recognising the various industry participants operating in the financial advice sector and the different types of advice services they provide. Many facets of the current legislative framework are based upon the provision of financial product advice and assume industry participants are providing comprehensive financial advice.”

Neil Griffiths

Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.

Neil is also the host of the ifa show podcast.