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Advisers still the ‘ultimate advice solution’: CFS:
SMSF trustees seeking loan advice

SMSF trustees seeking loan advice

A new report from Heffron has revealed SMSF trustees are increasingly seeking financial advice when putting a limited recourse borrowing arrangement (LRBA) in place.

According to Heffron’s latest SMSF Borrowing Data report, while LRBA use is growing amongst Heffron’s funds under administration, it continues to represent “quite a small proportion” across all Heffron’s funds.

“This is also reflected in ATO data in relation to the whole SMSF industry,” said Duane Pinches, Heffron’s head of document services.

Mr Pinches said the majority of LRBA loans put in place have been in relation to investment properties as opposed to commercial properties.

“Of those, 86 per cent have been advised by a financial adviser, reflecting the increasing role that financial advisers are playing when it comes to property investments,” Mr Pinches said.

“In our experience, the involvement of a licenced financial adviser in the LRBA process will generally mean that the SMSF trustee has received advice about the property investment and the ‘ins and outs’ of the LRBA structure.

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“This is contrary to popular belief that SMSF trustees are entering these arrangements without any advice or guidance.” 

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