Trustees should be required to have a minimum level of education to operate an SMSF, according to one financial services analyst.
WealthWithin investment analyst Janice Cox told SMSF Adviser that SMSF practitioners should be more concerned about the financial literacy of trustees than about recent talk of changes to FOFA.
“If you asked me what the [FOFA changes'] impact is on the general population, I would have concerns, but not with the SMSF space,” she said.
“In terms of the SMSF space, I think a lot more could be done in lifting the level of education standard that SMSF trustees are required to possess.
“I don’t think it should just be up to them to do it themselves; I think there should be some sort of control in the area about the minimum standards that are set.”
Wealth Within chief analyst Dale Gilham previously told SMSF Adviser education for prospective SMSF trustees should be compulsory, to ensure suitability of the fund for their circumstances.
“When you [see] at least half of the investments in SMSFs on average are in shares, that says to me that people need to be educated,” he said.
“Now that property has become bigger in terms of buying for SMSFs, [education] has become more critical, because that’s a huge mistake if you get that wrong.”
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