The Australian Securities and Investments Commission (ASIC) has no plans to prevent financial planners from providing advice for self-managed superannuation funds with balances under $100,000.
Speaking at the 2014 SPAA SMSF National Conference in Brisbane this morning ASIC commissioner Greg Tanzer responded to industry concern that the regulator was planning to mandate a minimum balance.
"We are not trying to specify that if a person has a minimum balance of $100,000 you can't advise them as an SMSF," he said.
Despite this, Tanzer said that there were inherent risks for SMSFs with sub-$100,000 balances.
"We want fact based, research based guidance. Want people to understand that if you are purely looking at cost then you are probably going to end up paying more if you have less than $100,000," he said.
"That's not the only consideration of course. But it's not a bad marker to start with because it gives you a point of comparison."
Tanzer also issued a warning to property spruikers that are using a "conference" type arrangement with advisers, trustees and auditors to entice SMSF investors.
According to Tanzer ASIC's jurisdiction with respect to real property "was very limited." However, if the investment was characterised as managed investment scheme then ASIC would cover it.
"We've seen property spruikers moving off-shore to avoid attention. If businesses targets SMSF investors then it is advice and if you are not accredited, we will come after you," he said.
"Super is a far too important investment for the future to be taken in by a glitzy promotion."Author: Alice UribeSource: Financial Standard
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