Speaking at the Mortgage & Finance Association of Australia’s national convention on the Gold Coast, ASIC deputy chair Peter Kell reiterated the corporate regulator’s focus on “one-stop shop” business models that provide advice on and assist in establishing SMSFs.
“Credit assistance providers operating outside such one-stop shop arrangements may consider that the issues raised in relation to SMSFs do not directly impact on them,” said Mr Kell.
“However, LRBAs for SMSFs are much more complex than a normal home loan, and credit assistance providers therefore need to be aware of the additional risks associated with such transactions.”
Mr Kell identified risks such as breach of credit legislation and inadvertently providing unlicensed financial advice.
“In some instances, recommendations about SMSF investment in real estate may trigger financial service licensing requirements,” Mr Kell said.
“ASIC has previously cancelled a credit licence and banned its director from engaging in credit or financial services due to a number of concerns, including the provision of unlicensed SMSF advice.”