In a statement issued by CareSuper, CEO Julie Lander said winding up SMSFs is an “increasing trend” and that the new partnership with Crowe Horwath will allow “CareSuper members to fast track the wind-up of their already-established SMSFs”.
“Lots of people have set up an SMSF thinking that they will relish the control they have over their investments, but they have reported to us that they were not aware of the time associated with compliance requirements and the ongoing costs at the time of establishing the SMSF,” Ms Lander said.
“The procedure of closing an SMSF is very drawn out. You have to notify the ATO, liquidate or transfer all the assets of the fund, arrange a final audit of your fund, lodge your SMSF annual return and finalise any outstanding tax liabilities. Our new partnership with Crowe Horwath means this process will be seamless for CareSuper members and handled in one simple step, ” she added.
Crowe Horwath head of SMSFs Susie Salmon said the firm – formerly WHK – is “thrilled” about the partnership with CareSuper.
“We are extremely excited about this partnership,” she said. “There are clients where an SMSF is not appropriate for their circumstances and this offer should be available to them.”
Winding up an SMSF is not something that is overly difficult.It is well known that Industry Funds dislike the competition of SMSF’s. It is also well know that some accountants and financial planners over promote the benefits of SMSF’s. As an SMSF auditor I see my share of poorly run SMSF’s. Set up correctly and for the right reasons an SMSF is way better than any Industry Fund could ever hope to be. Having said that a lot are not so the Industry Fund people have a point. If they can create a low cost way to wind up an SMSF that is a good thing. Issue is low cost, not just a busienss model of more fees being made winding the things up.
Has CARE done any market testing to support its getting into this caper? I can’t believe this move is demand driven.
ASIC must ensure its next industry shadow shopping review includes sending an SMSF trustee CARE’s way to test how they are selling this service.
Will the SMSFs be paying for the wind-ups themselves or will the Industry Funds be doing that?
ASIC just prosectued someone for free SMSF establishments….are free wind-ups any different?
Not sure they are backing the right horse here. I find it funny that just because they cant play a part in this side of the industry due to incompetence their point of difference or value proposition is attacking one of the most popular and fast growing sectors. Go your hardest. Its analogous with the boy with his finger in the Dyke.
So just to be clear, Care Super will be providing a full advice document to the Trustee/s outlining the strategy they are recommending to move into their own product from an existing SMSF.
I am sure this is un-conflicted… or will they be providing an advice document comparing their product with retail and other industry funds to ensure the clients best interest’s are considered. Let me guess – neither?
Crowe Horwath will just be taking instruction to wind up the fund so they wont be the conflicted party.
Anyone else getting sick of the hypocrisies in our industry – this is a product flog – not advice – and this cant be considered intra-fund advice!