Business News

Annual compliance, admin service still prominent

The latest research into the SMSF sector has revealed the majority of service providers offering compliance and administration services continue to do so on an annual basis.

The “Future of SMSF” survey, conducted jointly by the SMSF Academy and BGL Corporate Solutions, showed 67.1 per cent of firms in the compliance and administration space were employing an annual service delivery model, with only larger organisations, defined as those receiving fees in excess of $5 million, delivering more regular reporting.

The study also indicated fee pressure was emerging as a significant factor for those service providers, reflected in a median fee increase of 3.5 per cent over the past two years.

In addition, it emerged trustees were paying $2371 on average for SMSF compliance and administration services, with fees varying depending on the size and operation of the provider.

Respondents to the survey also indicated they were not enjoying the benefits of technology to the extent expected in light of the technological advancements that had affected the sector in recent times.

The report showed 59.9 per cent of service providers were employing data feeds and a further 24.9 per cent were providing their clients with access to some form of cloud software.

It confirmed ongoing client engagement was confirmed as a continuing challenge for SMSF service providers, with only one-third of participants providing regular newsletters to clients.

Time management appeared to be the biggest prohibiting factor behind that inaction.

Respondents admitted they expected social media to assist with that issue, but only 21.9 per cent of them were currently using it as an engagement tool for existing and potential clients.

The survey canvassed the opinions of 430 service providers, predominantly accountants, but with significant input from auditors, administrators and financial planners as well.

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