An industry super fund CEO has hit out at financial planners and accountants, blaming them for the movement of investors into self-managed superannuation funds.
Asked what is causing the leakage of retail and industry fund members into the SMSF sector, CareSuper chief executive Julie Lander pointed the finger squarely at external financial advisers.
“There are planners and accountants whose business models are set up to support [SMSFs] so if they get the ear of the client, that is the structure they will probably recommend, rather than saying ‘why don’t you stay with an industry fund’,” she told ifa.
“People only need to walk into a bank and be approached by a bank financial planner,” she added.
However, Ms Lander conceded that SMSFs were not unreasonable in all circumstances.
“I don’t say there should be no SMSFs - they are a legitimate vehicle for people with (a) a reasonable amount of money, and (b) the type of person who wants to get involved and who has the time and expertise, the know how to do it,” she said.
“But, there is a lot of people in them, who could just easily get the control they want and achieve what they want without having an SMSF.”
She also admitted that industry funds could be doing more to engage with members and stem the leakage.
“It is incumbent on us to communicate better and understand our membership base,” she said.
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