The management of the SMSF and the performance of its investments should be the principal concern, according to the IPA chief executive Andrew Conway.
Mr Conway argued that while administration could be more expensive for funds with lower balances, the trustees may decide to accept such costs based on the performance of the fund.
“The idea that fund performance should solely be measured by relative costs of administration misses the point,” said Mr Conway.
“Most people setting up an SMSF do so because they want control of their investments. Many trustees minimise costs by performing some of the SMSF functions themselves.”
Mr Conway also said unnecessary regulation should be avoided as it further increased the administration costs of SMSFs.
“The regulator needs to focus on issues like the quality of advice, removing conflicts of interest in the system and further education of trustees, not setting arbitrary figures,” said Mr Conway.
“As we know, the regulator is required to respond to and enforce government policy. We are hopeful the new government will provide clear guidance to the regulators.”
I am continually surprised just more knowledgeable the self appointed experts in Canberra are at how best I can save MY money than I am myself.
I wonder how many of them got financial advice when they opened their first bank account, or professional advice when they pruchased their first property.
Yet they are pretty quick to tell me how to run my own SMSF
I totally agree. It should be the Discretion of the member if he/she wants to set up and self-manage the super.
It is the industry funds that are lobbying to make it more difficult for individuals to self-manage the super.
These industry funds are making it difficult to roll over the funds by adding more red tape to the roll over application process.