The SMSF Professionals' Association of Australia (SPAA) has welcomed the FSI’s decision to not recommend imposing controls on SMSF balances or set-ups, in spite of various submissions calling for limitations to be imposed.
SPAA has also welcomed the FSI’s recommendation for obtaining bipartisan support for superannuation and removing it from the short-term budgetary cycle, labelling it an “enormous positive” to come out of the report.
The FSI’s report is a “ringing endorsement” of the SMSF sector, according to SPAA’s director of technical and professional standards, Graeme Colley.
“Like the Cooper Inquiry, it has given the SMSF sector a clean bill of health with no moves to limit the setting up of SMSFs, whether it be minimum balances, educational qualifications or any other impediments,” Mr Colley said.
“The fact SMSFs are barely mentioned in the report and then it’s only about not requiring them to meet comprehensive income products for retirement (CIPRs) and a recommendation that they not be prudentially supervised is evidence of this.”
SPAA also endorsed the report’s push to improve the education and qualifications for financial advisers providing Tier One advice.
“The report recommends a tertiary degree that is relevant; competence in specialised areas such as superannuation where it is relevant; and ongoing CPD requirements,” Mr Colley said.
“It also proposes that ASIC should complete the establishment of an enhanced public register of all financial advisers, which includes those who are employees.
“The inquiry considers that the register should include licence status, work history, education, qualifications and credentials, areas of advice, employer, business structure and years of experience – a position that SPAA totally endorses,” Mr Colley said.
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