SMSF administrators need to focus on creating more value for members in order to remain relevant in an evolving industry, according to a recent report from SMSF administration software provider Class.
The report said growing expertise in the SMSF industry meant members were seeking more than auditing, reporting and compliance support, and administrators should explore how to best meet the changing needs of SMSF members by focusing on the elements of fund administration that provided most value to members.
It highlighted returns, compliance, guidance, communication, rapport, cost and time as the key value areas for SMSF members, and said all seven represented areas of opportunity for administrators.
“[Members] value guidance at various stages of their SMSFs from setting up to running their funds. They want proactive advice to help them optimise returns and build a sufficient nest egg for their retirement,” it said.
“As regulatory requirements become more onerous and members worry about their investments, they appreciate receiving compliance alerts and timely information about their funds. They value relationships more as they navigate the increasingly complex SMSF arena.”
SMSF members had a tendency to misunderstand value and focus too heavily on short-term aspects of fund administration that were easier to identify and measure, such as those relating to cost and time, it said.
“To truly assess value, members should consider both the tangible and immediate factors like cost and the less tangible and harder to quantify – but ultimately more important – issues,” it noted.
“These can include the quality of the advice they receive, the relationships they have with the people and firms that support them, and ultimately the retirement wealth they accumulate.”
