Younger trustees causing shift in SMSF models
The dynamics of the SMSF practitioner/client relationship are shifting, with younger trustees less loyal and demanding more value for their dollar, according to one SMSF administrator.
Complete Super Solutions chief executive Martin Morris said the SMSF trustee of today is very different from traditional SMSF clients.
“They are younger, their barriers to entry are lower and their level of knowledge and access to information is far greater,” said Mr Morris.
“This is forcing those servicing this sector to think laterally about their business models.”
Younger SMSF clients are less loyal – they want greater value for the amount they pay for services and are a lot more comfortable managing their own affairs if needed, Mr Morris said.
“This means the trustee is more in control than ever before,” he said.
However, he warned the SMSF administration sector against using offshore outsourcing to respond to this client demand for lower prices.
“Many prospective users of outsourced administration services are concerned about the hidden costs of low-cost providers and privacy issues around offshore services,” he said.
Mr Morris said administrators should instead look to reduce prices by driving greater technology-based efficiency in the business.
“We believe the sector is still only scraping the surface of opportunity and you don’t need to sacrifice price any longer to access onshore services,” he said.