DIY Admin SMSFs Up For Grabs
Across the industry, 15 per cent of SMSFs are administering their fund on their own, presenting growing concerns around how they will cope with the complexities of the new superannuation rules, according to the latest analysis from Class.
The “June SMSF Benchmark Report” said the figure, based on data from Investment Trends, was down from 18 per cent last year, but still represented a significant number of SMSFs. “One of the things we look at for the report is the market segmentation and we’re looking at those trustees who are doing their own administration,” Class chief executive Kevin Bungard said during the firm’s webinar analysis of the report. “There’s a substantial proportion there – 15 per cent of SMSFs that are up for grabs if you have the right offering. “As you can imagine, if they’re going to try to implement some of the strategies we’ve been talking about [contributions splitting and transfer balance account clawback], as well as staying on top of that and do that using real-time reporting, given that most of them will be using Excel, they’re really going to find it difficult.” Bungard highlighted the opportunity for administrators to better engage with these DIY trustees. “I’m sure you know who they are and they’re using you for other services,” he said. “It’s also a good opportunity to think about what you need to offer to them to get them inside the camp so that you can help them with their SMSF. “So embrace technology, come up with the right processes and convince them that they should be working with you rather than doing it on their own.”