Continued SMSF migration represents significant latent demand for professional advice and assistance, though accountants rather than financial advisers may benefit most from the trend, according to the latest Core Data research.
The “2013 Direct Investing Report” found the continued movement into SMSFs would stimulate demand for the relevant professional advice and services.
The continued migration to SMSFs will … inevitably drive demand for suitable professional advice, although accountants rather than financial advisers may proportionally benefit the most from this – this is particularly the case for controllers, who are much more likely to partner with an accountant than the other [investor] segments,” CoreData head of advice, wealth and super Salvador Saiz said.
Overall, the majority of respondents who were looking to set up an SMSF intended to use a professional adviser, with 70.6 per cent stating that intention.
The result was predictably correlated with their money management style and whether investors were currently advised, notably, however, the majority of controllers and current non-advised investors still planned to seek professional advice.
The report found 33.2 per cent of respondents who would use professional services would most likely seek out an independent financial planner, followed closely by 27.2 per cent preferring an accountant.
When it came to seeking an SMSF specialist across advice and administration, 23.9 per cent said they would choose that type of professional, while a financial adviser aligned with an institution was preferred by 10.9 per cent.
Furthermore, the report said 38.4 per cent of investors were most likely to consider a direct investment within their superannuation fund as the most attractive option to them.
Having an advised SMSF was the next most attractive option at 20.1 per cent, which dropped from 30 per cent last year, followed by an unadvised SMSF at 10.6 per cent.
The report said 30.8 per cent of respondents were unsure about what was the most attractive option for them, particularly those who were outsourcers.
