The SMSF Association is expecting the next parliament to introduce measures to address the issue of financial abuse and coercive control in relation to superannuation, regardless of which party wins the coming federal election.
“Given the bipartisan support that we’ve seen in the parliament and throughout [the Parliamentary Joint Committee] inquiry, I think, regardless of which way the election goes, this would appear to be a policy priority for both sides of [politics],” SMSF Association head of policy and advocacy Tracey Scotchbrook said.
“And so we will expect to see something fairly soonish in the new parliament.”
Scotchbrook acknowledged SMSF advisers have a role to play in combatting these issues, but identified one segment of the sector that might prove more problematic in the process and demands a greater degree of urgency.
“Our concern is [around] the unadvised [trustees]. How can we come up with a solution to help that cohort of people when they don’t have that touchpoint with a professional?” she told delegates at the recent SMSF Association National Conference held in Melbourne.
According to Scotchbrook, all practitioners involved in finding a solution for the issue must avoid any preconceived ideas as to who the victims of coercive control and financial abuse might typically be.
“Now importantly too is that we don’t make any assumptions as well about our clients and what’s happening. It was evident from a number of people who gave evidence [at the Parliamentary Joint Committee inquiry] how highly educated some of [the victims] were. It [predominantly happens] to women and often highly educated women,” she noted.
“In fact, in one case a person’s SMSF proceeds were stolen [and they were] a financial services executive [who] was postgraduate qualified.”
She identified one area of concern the SMSF Association has stemming from recommendation nine from the inquiry.
“[This recommendation is for] the government to undertake a review of the intersection between financial abuse and the superannuation system with a particular focus on SMSFs and the role that they play,” she revealed.
“It was noted in the commentary around the recommendation that SMSFs are vulnerable to manipulation by perpetrators due to their lower levels of regulatory oversight, which is based on the premise of individuals’ self-protection that gives rise to a greater risk that SMSFs can be used as vehicles for financial abuse.”
