The SMSF Association has indicated the increasing incidence of funds being established without the involvement of financial advice is a result of innovation and an industry framework that has become unsuitable.
“In terms of why we are seeing so many people set up a self-managed super fund apparently without the benefit of financial advice, I think there are a number of reasons for that and one of those is technology,” SMSF Association chief executive Peter Burgess told attendees of the Class Thought Leadership Breakfast panel session at the industry body’s National Conference 2026 last week in Adelaide.
“It is easier today for people to set up a self-managed super fund; they can go online to set up a self-managed super fund and so forth.
“But I also think it is a demonstration that we have an advice framework that is not fit for purpose.
“We know that many accountants today don’t have a limited [Australian financial services] licence, they’ve given up their limited licence, meaning giving advice to someone about whether they should have a self-managed super fund is almost exclusively now the domain of the licensed financial adviser, and we know there are not enough financial advisers out there giving that advice and it’s costly for advisers to be able to provide that advice.”
According to Burgess, when these factors are combined, it is unsurprising an increasing number of Australians are establishing SMSFs without receiving financial advice.
To this end, recent sector analysis found 80 per cent of new SMSFs were set up without financial advice.
Despite this recent trend, Burgess noted the growth in the number of SMSFs reflected a healthy sector.
“We’re coming off two financial years where we’ve seen some very strong establishment numbers and in this financial year it has accelerated. I mean it looks like we are going to have three consecutive financial years of record numbers of fund establishments and I don’t think that’s ever happened before,” he noted.
“What that’s telling me is we are in the midst of a structural change where we are seeing many superannuation funds wanting higher levels of engagement.”
