Legal complexity an SMSF 'headache'
The “biggest headache” surrounding the SMSF sector is its legal complexity, according to Mortgage Settlements Australia (MSA).
Speaking to SMSF Adviser, MSA national director Paul Agnew said his company’s new legal service for SMSF lenders aims to iron out some of the complications as the industry continues to boom.
“We work closely with our lenders to make them aware that we have SMSF expertise and we help them educate their business development managers and their brokers so that they understand what the legal issues are,” Mr Agnew said.
“Lawyers have a habit of making things considerably more problematic than they need to be,” he added.
MSA’s SMSF service is an expansion of its existing business, which provides mortgage document and settlement services across Australia, and comes as a result of SMSF lending experiencing huge growth.
Mr Agnew added that the service will not only benefit lenders involved in the SMSF sector but will have a flow-on effect which will benefit trustees.
“The main thing that MSA is trying to do is make it more user-friendly but, at the same time, still protecting the lender and ultimately making sure that the consumer is being informed,” Mr Agnew said.
“So educating the lender and also assisting the lender in educating the market and de-stigmatising it means the brokers can go out there and be able to sell the opportunities regarding SMSFs.”
