A vast majority of respondents to an SMSF Adviser straw poll have indicated they believe the SMSF sector is at risk of becoming over regulated.
In response to the question ‘Is the SMSF sector at risk of becoming over regulated?’ 87.9 per cent of the 157 respondents answered ‘yes’. The remaining 12.1 per cent answered ‘no’.
The Institute of Public Accountants’ executive general manager Vicki Stylianou said there has been over-regulation in the SMSF space this year, with some “arbitrary lines drawn” particularly in relation to auditor registration.
“The regulatory [pendulum] has gone too much towards over regulating the profession rather than trying to strike a decent balance,” Ms Stylianou said.
“There’s probably been too much regulation on the profession and maybe not enough emphasis on educating consumers. I don’t think that we do enough in the space around financial literacy of consumers.”
Ms Stylianou added limited licensing requirements are creating “a lot of angst and a lot of pressure” on accountants, and said parts of the application process are lengthy and unnecessary.
With the continued growth of the SMSF sector, Ms Stylianou predicts greater attention from the corporate regulator in 2014.
“I think we’re definitely going to see more attention from ASIC,” she said. “The systemic risks are just too great if something goes wrong.”
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