Zuper is a superannuation fund which offers members investment options in heath, renewable energy and technology, and is actively looking to build referral partnerships with accountants and advisers advising on SMSFs.
BGL managing director Ron Lesh is one of the early investors in Zuper. Mr Lesh said one of the reasons he chose to invest in in Zuper, is because he sees Zuper members at the future members of SMSFs.
“Zuper gives them the opportunity to build their super and then move to an SMSF when the time is right,” said Mr Lesh.
Zuper chief executive Jess Ellerm also agreed that for members with balances below the $200,000 mark but who want to have some choice of where their superannuation money is invested, the fund can be part of their transition to an SMSF.
Ms Ellerm said Zuper provides an option for them to invest their superannuation money while they are still accumulating a large enough balance to justify an SMSF.
ASIC has previously said that where the starting balance for an SMSF is below $200,000, generally the costs involved with establishing and operating an SMSF are “unlikely to be competitive compared to fund regulated by the Australian Prudential Regulation Authority (APRA)”.
In cases where advisers do recommend starting an SMSF with an amount below this, ASIC said the adviser needs to be able to justify why it is then in a client’s best interests based on their objectives and financial situation.
Ms Ellerm said the fund provides its referral partners with tracked links and reports back to them the clients that have actively become Zuper members so they can stay involved with the client from a relationship perspective.
“At some point, we know they might want to upgrade to an SMSF, and that’s okay,” she said.
“Our referral partners often have established relationships with their clients, so we make sure that all post-sign up communication journeys are tailored to include any specific updates or educational content from that partner.”
The fund uses marketing automation, segmenting and tracking to keep both the referrer and the client in the loop with performance of the fund and any other new features that are being released, she explained.
“Our partners build life-time relationships with their clients, so they need a financial solution for every stage of that journey. We’re helping our partners maintain that relationship while they are still a ‘low-balance’ client, rather than letting them walk out the door,” she said.
Accountants need an AFSL to refer clients to a financial product like this.
If you do it as general product advice you need an AFSL
If you do it as personal product advice you need an AFSL and to go through a licensed advice process (fee & scope agreement, fact find, research file, SOA, authority to proceed)