The recent suggestion that SMSF trustees should undergo a competency test has been rejected by the SMSF Professionals’ Association of Australia (SPAA) as “elitist”.
European financial literacy specialist Robert Holzmann has suggested SMSF trustees should have a “competency test”, noting that approximately 30 per cent of trustees “only have a trade or diploma qualification”.
“It would seem obvious to point out that anyone running a business, including company directors, trustees of trusts and partners in partnerships, do not require mandated training to do their job,” said SPAA’s chief executive Andrea Slattery.
“Many of them are responsible for unrelated investors’ money and yet there is no requirement they have formal academic qualifications.
“With an SMSF, the trustees are responsible for their own money. Perhaps the simple reason SMSFs have performed on par with the APRA-regulated funds is the simple fact it is their money and they have a greater interest in ensuring it is invested wisely, and therefore more conservatively, to ensure real gains.”
Ms Slattery also noted the previous APRA Trustee Governance Report on the APRA-regulated sector showed approximately 90 per cent of these funds did not require any formal education training to be a trustee, and that 81 per cent did not require any super or investment knowledge to be a trustee.
“Yet APRA fund trustees manage billions of dollars of other people’s savings,” Ms Slattery said.
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
23 Jun 2017Trustees reminded of ‘positive’ CGT news as EOFY loomsBy Katarina Taurian
23 Jun 2017SMSF practitioners told to reassure clients in 30 June lead upBy Miranda Brownlee
23 Jun 2017SMSFs warned on 30 June cut off for electronic transfersBy Staff Reporter
22 Jun 2017Westpac veteran and SMSF exec set to departBy Staff Reporter
22 Jun 2017ATO sets compliance targets for auditors in 2017-18By Miranda Brownlee
22 Jun 2017CGT relief still plaguing trustees, says former ATO execBy Miranda Brownlee
- view all
Trustees reminded of ‘positive’ CGT news as EOFY looms
A capital gains tax (CGT) issue that was causing confusion in the industry has been cleared up by the ATO, and professionals are being remin...read more
SMSF practitioners told to reassure clients in 30 June lead up
With the focus predominantly on super members with above $1.6 million, it may be worth practitioners informing clients unaffected by the ref...read more
SMSFs warned on 30 June cut off for electronic transfers
With a significant portion of Australians missing the 30 June cut off last year when making non-concessional contributions, Colonial First S...read more
- view all