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
- 22 Sep 2017ASIC permanently bans SMSF property spruikerBy Miranda Brownlee
- 22 Sep 2017Male SMSF investors ‘bigger risk takers’, says reportBy Staff Reporter
- 22 Sep 2017Lawyer flags subdivision trap with downsizer contributionsBy Miranda Brownlee
- 22 Sep 2017ATO urged to address ‘unknowns’ with LRBA reportingBy Miranda Brownlee
- 21 Sep 2017Lost and unclaimed super climbs to $18 billionBy Lara Bullock
- 21 Sep 2017ATO to release further guidance on reservesBy Miranda Brownlee
- view all
- Male SMSF investors ‘bigger risk takers’, says report
Male SMSF members tend to hold a greater share of assets in higher risk investments including domestic shares and property in comparison to ...read more
- Lawyer flags subdivision trap with downsizer contributions
SMSF trustees planning to make downsizer contributions have been warned that if a property has been subject to a partial sale in the 10 yea...read more
- ATO urged to address ‘unknowns’ with LRBA reporting
The ATO has been asked to provide further clarity around the events based reporting requirements for LRBA repayments, with the new requireme...read more
- view all