Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter
IPA against minimum SMSF balances

IPA against minimum SMSF balances

Reporter
26 September 2013 — 1 minute read

The Institute of Public Accountants (IPA) has expressed concern about the possibility of the corporate regulator imposing minimum account balances on SMSFs.

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.

Advertisement
Advertisement

“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.”

IPA against minimum SMSF balances
default
smsfadviser logo
join the discussion

When do you plan to undertake the exam under the new adviser education standards?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.