SMSF Association CEO, Peter Burgess, said APRA funds are rapidly changing, particularly concerning their focus on the pension phase – a sector of the industry in which SMSFs have been thought leaders for many years.
“Over the past decade, we have witnessed APRA funds experience significant change, often driven by government intervention, such as performance benchmarking, additional statutory reporting, compulsory member communications, and mandatory retirement support,” Mr Burgess said.
“This intervention, which has been designed to improve the system by protecting member benefits and enhancing their outcomes, has largely bypassed our sector, but the question we now ask is this all about to change, and, if so, how?”
Mr Burgess said the SMSF sector has often been “immune to the changes in the broader superannuation sector” but runs the risk of being left behind if it does not now take an active role in advocating around policy changes.
He added the belief that regulatory changes won’t impact SMSFs substantially “has been a fool’s paradise that puts our sector at risk of being left behind”.
“Do we need to be more open-minded when it comes to regulatory intervention, or do we remain wedded to the status quo that has served us well in the past, understanding that APRA funds are rapidly changing, particularly as they focus more on the pension phase?” he said.
“Up til now, APRA funds have focussed on the accumulation phase. But as they turn their attention to the de-accumulation phase – a space we have traditionally dominated – with the prospect of mandatory retirement support for members looming, will the tables turn?”
The issue will be one of the first topics of discussion at the upcoming SMSFA National Conference at the Brisbane Convention and Exhibition Centre from 21-23 February during a Thought Leadership Breakfast on the opening morning.
A four-member panel will examine the challenges facing the sector including the potential for more regulatory intervention and the growing attention that APRA-regulated funds are giving to the de-accumulation phase of super and longevity risk.
Session moderator, Class CEO Tim Steele, will be joined by Mr Burgess, Heffron Consulting managing director Meg Heffron, KPMG Partner Linda Elkins, and Brighter Super CEO Kate Farrar, to examine where the SMSF sector’s strengths lie and where it needs to “level up.”
