SMSF property spruikers need regulation: ASFA

12 September 2013
| By Kate Cowling |
image
image
expand image

Property marketers who try to incentivise self-managed superannuation fund (SMSF) customers with overseas holidays should be bound by the same regulations as other financial advice providers, an industry body believes.

The Association of Superannuation Funds of Australia (ASFA) echoed previous calls for tougher licencing restrictions after reports emerged of SMSF members receiving sweeteners in exchange for buying property through a certain fund.

And while most financial advice providers are required to hold Australian Financial Services Licences for consumer protection purposes, the same regulations do not apply to residential and other property marketers, according to ASFA.

"For some time now ASFA has been concerned about the growing number of people being targeted by schemes which offer attractive incentives up front at the expense of good retirement outcomes down the track," ASFA CEO Pauline Vamos said.

"Such schemes run the risk of falling foul of the sole purpose test that applies to all SMSFs. As well, provision of large incentives indicates that a property is not being sold at a fair market price.

"With more and more people entering the SMSF sector each day, it's critical the regulators address the growing concern the community has around its governance, and ensure professionals working in this area are licensed appropriately."

Vamos said SMSFs should be selected with the sole intention of generating suitable retirement outcomes.

"Prudent management of concessionally-taxed superannuation contributions is essential to ensuring we have a system that is sustainable now and into the future," she said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

10 months 2 weeks ago
Kevin Gorman

Super director remuneration ...

10 months 3 weeks ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

10 months 3 weeks ago

The central bank has served up a disappointment for punters on Melbourne Cup Day....

1 hour ago

The fund’s inaugural chief retirement officer is looking to establish a new venture. ...

5 hours 47 minutes ago

The sovereign wealth fund remains cautious of the impact of high inflation as it announces a strong return in its latest update....

23 hours 50 minutes ago