The increasing costs of providing SMSF administration is a concern needing to be addressed in the coming years, according to a specialist service provider in the space.
Australian Superannuation Compliance (ASC) founding principal Ravi Subramaniam pointed out the increasing number of regulations being imposed on SMSFs was making the provision of administrative services more expensive.
Furthermore, Subramaniam said the expectation that service providers such as ASC would absorb those increasing expenses was making the area of administration even more challenging.
As ASC celebrates its twentieth anniversary in the financial services industry, he said experience and knowledge gleaned over many years could help overcome the hurdles associated with providing SMSF administration.
“I am especially proud that ASC’s growth and marketplace reputation has been built on the quality of our knowledge and expertise to solve complex administrative problems,” he said.
“This in turn has been reflected in referrals and recommendations by satisfied clients commending and referring ASC to accountants, lawyers, planners, business associates and family members.
“SMSF administration and compliance is an area that demands many years of experience in order to provide this service and facility competently.”
SMSF administration specialists were not the only market participants facing new challenges, with financial planners also having to find new ways to service clients, he said.
“The new SMSF era will need to deal with the impact of baby boomer investors ceasing their contributions to enter retirement and as a consequence this, added to the impact of benefit payments and drawdowns from funds, will combine to surpass those of contributions for the first time,” he said.
As such, he said he believed advisers would abandon generalist services in favour of becoming specialist practitioners in the future in response to client demand.
