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SMSFs urged to target employer super
Self-managed superannuation funds (SMSFs) should look to be disruptors in the default superannuation space, according to Deloitte's chief edge officer, Peter Williams.
Addressing the opening plenary of SMSF Association annual conference in Adelaide, Williams pointed to the dominance of Australian Prudential Regulation Authority (APRA) regulated funds in the employer sponsored space as an area to be targeted.
He said SMSFs had already proven to be a disruptor in the superannuation space and should not be satisfied with an industry breakdown of one-third retail funds, one-third industry and one-third SMSFs.
He said in circumstances where APRA-regulated fund hold more than 80 per cent of the employer-sponsored super segment, this represented an opportunity for SMSFs which ought to be pursued.
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This seems a ridiculous notion. SMSF's are not a product, they are a structure. If a SMSF is the best solution for the member of a corporate super fund then by all means advise the client of this and clearly and accurately justify the replacement of the existing product. Isn't this an issue around advice? Haven't we moved on from 'targeting' people to sell them a product?
No wonder advisers who conduct themselves in this manner have a terrible reputation. They should have their licenses suspended for this sort of behavior.
Advisers also need to remember that employer super plans are often sponsored by the employer and have significant discounts to 'retail'. I doubt a SMSF will be price competitive for many.
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