The federal government, Australian Taxation Office (ATO) and Australian Securities and Investments Commission (ASIC) are looking to further increase professionalism, reduce red tape and target one-stop shop operations in the SMSF space as the industry continues to grow and mature.
At the SMSF Professionals’ Association of Australia National Conference in Brisbane last month, Assistant Treasurer Arthur Sinodinos said the government was keen to further lift professionalism.
“[The government is looking to increase professionalism] particularly when it comes to financial advisers, so we’re working with ASIC on further initiatives in that regard,” Sinodinos said.
“It’s important, and I think the various associations are trying to do this, that as a government we also reinforce what they’re trying to do and keep embracing those standards in the interest of everybody.”
During a regulators panel discussion, the ATO and ASIC provided their approach to the industry going forward.
The ATO revealed it was concentrating its industry discussions on how to cut red tape for superannuation and it publicly asked the sector to share its views.
ATO acting second commissioner Alison Lendon said as the regulator, it was important for the tax office to ensure the health and security of the sector, including SMSFs.
“We think from the ATO’s perspective that it’s in good shape and that this is, in no small part, due to the positive and productive working relationships that we have with the industry and the professional organisations, and individual SMSF professionals,” Lendon said during the panel discussion.
“A major focus for our discussions at the moment is how to reduce red tape.
“We’re really open and looking for ideas around that so if you have any ideas, please let us know as we’re keen to hear them.”
She said as part of the commissioner’s review of the ATO’s consultation forums, it was now consulting in a much more targeted and effective way.
“Protecting retirement savings is our shared purpose and we are trying to make things easier for everyone by improving the way that we consult and also by improving our support services,” she said.
Meanwhile, the corporate regulator said one-stop shop operators and misleading advertising through social media channels and seminars would be on its SMSF taskforce’s radar in 2014.
The decision to expand the SMSF taskforce’s focus was made at the most recent taskforce meeting held last month.
ASIC commissioner Greg Tanzer said the taskforce would firstly appoint a small project team to explore the trend of one-stop shop operators that offered a range of services to SMSFs.
“The project team will investigate the often complex business model structures of these operators and the risks to investors that this trend poses,” Tanzer said.
“This area of focus comes in response to the recent collapse of the Charterhill Group, which operated as a one-stop shop providing, amongst other services, advice to clients on establishing SMSFs, rollover of existing superannuation funds into an SMSF, and the sourcing and purchase of investment properties.”
The second area the taskforce will expand its work into is misleading advertising of SMSFs. ASIC regularly identified SMSF advertising on websites, in print and on radio that failed to comply with “Regulatory Guidance 234: Advertising financial products and advice services: Good practice guidance”, Tanzer said.
“This work will be expanded to cover online advertising channels such as Twitter, Facebook and YouTube,” he said.
“We will also be looking at SMSF seminars for evidence of misleading and deceptive conduct, as well as any unlicensed financial services conduct.
“Where we identify any breaches, regulatory action will be sought and we will look to issue an alert to industry and the public to be wary of shonky selling tactics at SMSF seminars.”
Sinodinos closed his speech by encouraging the industry to continue its good work.
“I think what you’re doing is very important because philosophically, I like the idea of people being able to manage things for themselves, but they need to have access to the best possible professional advice,” he said, adding it was part of the growth area of financial services.
“It’s a growth area in terms of the economy and very important to not only how we develop domestically but as a platform for the export of financial services.
“Thirty years of deregulation, 20 or so years of developing the superannuation sector has built a very vibrant financial sector here in Australia and it’s got potential not only for local jobs but internationally for the export of financial services.”
