Speaking at a recent event in Sydney, HLB Mann Judd partner Michael Hutton said that despite the announcement from Labor to remove the refund of franking credits, he hasn’t seen any clients make the move to industry or retail super funds, beyond the typical reasons such as older members no longer being able to manage the fund, death or not having enough scale.
“I suspect it may happen if the imputation credit changes go ahead though, because that is a way of preserving the refund of the imputation credits,” Mr Hutton said.
“What we are seeing from the other side, though, is where a client is setting up an SMSF and they’re rolling out of an industry fund, they’re being sent this really detailed letter from the fund asking the client whether they really want to go ahead with it.”
Mr Hutton said that these letters often question whether the member really understands the obligations of an SMSF and whether they’ve thought it through.
“They also ask the member whether they want to discuss it with an industry fund adviser,” the partner said.
“I find that very interesting because for years [the industry funds] have been chastising advice.”
ISA the bottom dwelling ambulance chasers of the financial services world. Run by “liars, cheats and thugs” as their own Royal Commissioner called the unions in 2015
I think we all knew Labor’s attack on SMSFs via banning excess franking credit refunds was simply a ploy to get our funds into an industry fund. Politics of envy and always an eye for the quick buck.
I have stated this in a number of comments and in plenty of seminars the industry super funds have declared war on SMSFs. They have laid retail funds to rest and now it is our turn. Roll on Super Stream where there is no opportunity for them to save their client funds. But expect a Labor Government to introduce a lot of moves to make industry funds THE savings vehicle for Australians and that means not only negatives for SMSFs but also property investing. You heard it here.
Nothing like some highly Conflicted Vertical Integration Industry Fund Advice against their neminsis SMSF.
I hope there is clear disclosure about the conflicts of the Industry Fund Advice but I doubt it very much and ASIC will do nothing about it.