A one-price SMSF business strategy has proven successful for a relatively new entrant in SMSF administration, with the company set to launch an IPO this year, just three years after its establishment.
Speaking to SMSF Adviser, Squirrel Superannuation chief executive Damien Linn said the model of the company has been based off TPG’s unlimited broadband model, with all clients paying the exact same fee regardless of the complexity of the SMSF, its underlying assets and strategies.
The annual fee, he said, covers everything including audit costs, regulatory costs, the annual returns of companies and tax returns.
While there are some clients with extremely complex needs that the company loses money on, Mr Linn said there are other SMSFs that are a low-cost impact on its operations team.
“It was based on the theory we never wanted a client to feel nervous about going and buying an investment property or two or three for that matter, or buying unlisted shares, or international shares or something like that for fear of it costing them more money,” he said.
The company he said is targeting the “40 to 50 per cent of people ordinarily wouldn’t see SMSFs as a viable option”.
Mr Linn said Squirrel Superannuation plans to launch an IPO in August this year.
“We’re doing the work on prospectuses for that and we’re investing very heavily in our technology and software capabilities,” he said.
The company, he added, is further investing in algorithmic-based engines or artificial intelligence engines that can identify and predict common trustee errors and warn people or offer them corrections, prior to making common mistakes.
“We’ve built the system which optimises transition to retirement with two clicks of a mouse button,” he said.
According to Mr Linn, clients can establish a fund, open the corporate trustee, generate trust deeds, open bank accounts, and register with the ATO within 90 seconds, depending on typing speed.
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
28 Jul 2017Accounting firms neglecting client advice needsBy Miranda Brownlee
28 Jul 2017ATO reveals penalties for real-time reporting failuresBy Miranda Brownlee
28 Jul 2017CEO warns on threat of super fund start-upsBy Miranda Brownlee
28 Jul 2017SMSF firms cautioned on unpredictability of superBy Miranda Brownlee
27 Jul 2017Pressure on ATO to fix portals saga continuesBy Katarina Taurian
27 Jul 2017Lawyer flags identification traps with CGT reliefBy Miranda Brownlee
- view all
ATO reveals penalties for real-time reporting failures
While the ATO will initially take an educational compliance approach in relation to event-based reporting for SMSFs, it has provided details...read more
- view all