Platforms are not currently catering to the needs of their SMSF clients, according to OneVue, with the industry needing to “redefine” platforms and put downward pressure on fees.
With the launch date of the ASX Managed Funds Service (commonly known as AQUA II) growing closer, Connie McKeage, chief executive officer of OneVue, told SMSF Adviser the traditional cost structure of platforms is under threat.
“I think [AQUA II] holds platforms accountable for their fees,” Ms McKeage said. “I think there should be a downward pressure on platform fees, I think some of them are not justifiable.”
“The poor [financial] advisers, they spent the last couple of years looking at how they’re going to justify their value to a client and to charge a particular price. Why shouldn’t we as a platform be treated equally?"
Ms McKeage said she is hopeful platforms will justify their value for clients when AQUA II is launched, adding that platforms will have to “explain why they’re charging so much” and re-focus their value proposition.
“What AQUA II doesn’t do is ... the tax administration and reporting... so there is still value in platforms. The question is at what price.”
Ms McKeage added that it has historically been difficult for some platforms to keep SMSF clients because the breadth and depth of services on offer are not “client-centric”, meaning they don’t necessarily cater to the preference of SMSF investors.
“You are not going to get SMSF clients if the product on offer is just managed funds and listed securities,” she said. “They’re looking beyond the core assets.”
“The whole point [of] SMSFs is it’s self-managed and self-directed and therefore you need to have choice.”
However, OneVue has had “record growth” with SMSF clients, with approximately two thirds of the group's business involving SMSFs.
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
- 21 Aug 2016Risks flagged with real estate appraisal valuesBy Miranda Brownlee
- 21 Aug 2016Lawyer challenges ATO view on two fund strategiesBy Miranda Brownlee
- 18 Aug 2017ATO locks in details, addresses panic on real-time reportingBy Katarina Taurian
- 18 Aug 2017Data feeds unreliable for new reporting, says mid-tierBy Miranda Brownlee
- 18 Aug 2017Tax component confusion spurs potential tax liabilitiesBy Miranda Brownlee
- 18 Aug 2017Contributions triple in June quarter, survey showsBy Staff Reporter
- view all
- ATO locks in details, addresses panic on real-time reporting
The tax office has addressed several points of confusion with the new events-based reporting regime, locked in key deadlines, and outlined w...read more
- Data feeds unreliable for new reporting, says mid-tier
With an estimated 20 per cent of SMSFs still encountering errors from data feeds, one mid-tier firm believes the ATO should allow SMSF pract...read more
- view all