The Association of Superannuation Funds of Australia (ASFA) has said there are gaps in the consumer protection framework for SMSFs and that trustees should be wary.
SMSF Adviser requested comment on the issue from ASFA amid the collapse of Charterhill Group, first reported by SMSF Adviser in January.
O’Loughlin’s Lawyers, representing at least 15 Charterhill clients, told SMSF Adviser that many of these clients are ‘mum and dad’ investors.
“The average creditor that we are seeing is between $80,000 to $120,000,” O’Loughlin’s Lawyers partner Kym Ryder said.
While the association could not comment specifically on Charterhill, ASFA chief executive Pauline Vamos said investors “must be wary”.
“There are some gaps in the consumer protection framework for SMSFs and investors must be wary as a result,” Ms Vamos said.
“The law assumes that SMSF trustees are sophisticated and knowledgeable investors and as such, are able to look after themselves,” she said.
ASFA’s Ms Vamos said that when looking at any investment, including property, it is wise to get advice from a licenced financial adviser.
“That way, there is some protection for trustees of SMSFs in the form of oversight of the licensee by ASIC, as well as access to the Financial Services Ombudsman,” she said.
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
23 Jun 2016Trustees reminded of ‘positive’ CGT news as EOFY loomsBy Katarina Taurian
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
22 Jun 2017Consultancy firm predicts low take-up of SMSF robo-adviceBy Miranda Brownlee
21 Jun 2017SMSFs warned on timing traps with unit trust transfersBy 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
ATO sets compliance targets for auditors in 2017-18
The ATO will extend its focus on auditor independence in the next financial year, examining the referral sources of audits, and will also sc...read more
CGT relief still plaguing trustees, says former ATO exec
SMSF trustees continue to be under a number of misconceptions in relation to CGT relief in terms of what assets are eligible for the relief ...read more
- view all