Powered by MOMENTUM MEDIA
subscribe to our newsletter

Accountants looking to broaden SMSF involvement

SMSF involvement
Adrian Flores
09 June 2020 — 1 minute read

Accountants are wanting to grow their role with trustees despite slowing growth of newly established SMSFs in the market, new research reveals.

The research from Investment Trends found accountants are seeking greater involvement with trustees even with the annual establishment of new SMSFs falling from a high of 40,000 in 2012 to only 20,000 in 2019.

“Accountants already play an influential role in the SMSF space, with accounting firms serving 129 SMSF clients each, on average. But given the choice, accountants would ideally like to grow their firm’s SMSF client base by 35 per cent from 129 to 174 clients,” said Investment Trends senior analyst King Loong Choi.

Advertisement
Advertisement

“In their quest to serve more SMSF trustees, accountants say their top challenges are regulatory in nature, ranging from licensing restrictions on providing financial advice (49 per cent), heightened regulation in setting up SMSFs (34 per cent) to compliance obligations (31 per cent).

“However, many accountants also face issues on the client-facing side, such as competitive pricing/fee recovery (38 per cent) and attracting new SMSF clients (29 per cent).”

Potential SMSFs in the market

Further, despite the decline in the establishment of new SMSFs in recent years, the research found that accountants say that many of their existing clients show interest in setting up their own SMSF.

“SMSF trustees already comprise a large segment of accountants’ total client base (36 per cent, on average). Still, accountants estimate a further one in eight of their clients is suitable for an SMSF, and half of this cohort has expressed an interest in establishing one,” Mr Choi said.

“Given the large pool of potential SMSFs, there is a clear opportunity for service providers to help accountants better serve this segment.

“To help educate clients and facilitate SMSF set-up, accountants want to be better equipped to explain the suitability of SMSFs (52 per cent), and the roles and responsibilities of trustees (49 per cent).”

The Investment Trends report is based on a survey of 715 accountants in public practice that was concluded in March 2020.

Adrian Flores

Adrian Flores

Adrian Flores is the deputy editor of SMSF Adviser. Before that, he was the features editor for ifa (Independent Financial Adviser), InvestorDaily, Risk Adviser, Fintech Business and Adviser Innovation.

You can email Adrian at This email address is being protected from spambots. You need JavaScript enabled to view it..

Accountants looking to broaden SMSF involvement
nest money smsf
smsfadviser logo

Are you up to date with the legislative changes from 1 July? Contribution cap increases, super guarantees, age increases, SG rate increases. The budget announcement changes. Don’t be caught off guard by your clients’ questions. Prepare for any scenario with the SMSF Foundations course. 21 CPD hours available. Learn more

Arm yourself with the critical information that you need to ensure you and your clients continue to thrive in today’s changing environment at the free-to-stream SMSF Adviser Technical Strategy Day. Live streamed directly to you in October over three days, this event is jam-packed with expert-led sessions to arm you for success by providing the latest updates on regulatory and legislative changes impacting SMSFs. Secure your free spot today, visit www.smsfstrategyday.com.au

join the discussion

Latest poll

Do you have clients that are aged 65 or 66 planning to trigger the bring forward rules?

SUBSCRIBE TO THE
SMSF ADVISER BULLETIN

Get the latest news and opinions delivered to your inbox each morning

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.