Business News

Buying activity grows in SMSF space

Acquisitions of SMSF businesses are expected to rise this year as competition increases among service providers, according to a broking principal.

Forte Asset Solutions director Stephen Prendeville said within the wider financial services industry, the SMSF market was the key area where acquisitions had occurred, particularly in the past 12 months.

“We’re not seeing a lot of organic growth in the advice environment, with the exception being SMSFs,” Prendeville told selfmanagedsuper.

“I’m not sure that the growth of SMSFs is actually assisted by advice, but [rather it] will be a lot of that technology play that we saw.”

In October, SuperIQ, which is 49 per cent owned by AMP, acquired the SMSF administration business of Brisbane-based listed financial services company Tranzact.

The following month, ANZ sold its SMSF accounting, tax and compliance business, Super Concepts, to SuperIQ.

In addition, around the same time AMP acquired SMSF business Supercorp, after acquiring Cavendish in 2012.

Prendeville said there was strong demand for technology businesses as SMSF service providers needed an “enabler” to engage their direct market.

“Many people are looking at that and I think that’s where you will find a continued focus – on technology,” he said.

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