The mainstream superannuation funds have, for some time, been understandably concerned by the loss of members to SMSFs, as our sector of the superannuation industry has grown. Many large funds, like AustralianSuper, have launched ‘member-directed’ options, which allow fund members to choose investment options that enable some limited choice of shares and other investments.
These options are relatively new (although AustralianSuper launched its first incarnation over a decade ago) and have not attracted too many members to date. The AustralianSuper option has $1.7 billion of the fund’s total member assets of $75 billion.
Last week at the Conference of Major Superannuation Funds – the annual meeting of the not-for-profit superannuation sector, which oversees $600 billion in superannuation savings – delegates expressed their concerns on oversight of the DIY sector during a regulator update session.
Australian Securities and Investments Commission (ASIC) senior manager, investment managers and superannuation, Alex Purvis, said in response to a question from the floor about equal scrutiny for all sectors of the superannuation industry, that the regulator would continue to keep its eye on SMSFs.
“The fact that we have a taskforce obviously suggest that were taking the growth in SMSFs fairly seriously,” she said.
“The concern is you will end up with people in these arrangements that shouldn’t be there.”
ASIC’s focus is also on advertising and misleading advertising regarding SMSFs, such as the recent infringement notice penalty paid by one SMSF administration provider.
SuperHelp Australia paid a $10,200 fine following misleading statements made about the cost of setting up a self-managed superannuation fund. ASIC was concerned that representations that the fund set up was “free” subject to some conditions that were not made clear in the advertisement was a misrepresentation.
“[Our] work in advertising…has mostly been driven by the SMSF taskforce,” Purvis told the conference.
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