The real changes to SMSFs and the Super Rules Graeme Colley Director of Education and Professional Standards SPAA

Superannuation in Australia

SMSF Statistics at June 2012 (Quarterly)

How much do SMSF members earn?

Who are the players in the SMSF industry? Main players: Accountants Financial planners Trustees and members Regulators Secondary players: Associations Product providers – stockbrokers, share trading services, real estate agents, banks and financial organisations Administrators

SMSF business models Platform competition Industry fund clones Current issues with client demand and non use of advisers Perception of advisers

What changes are happening to SMSFs StrongerSuper changes Accountants’ limited licence from 1 July 2013 Auditor registration Financial planners and taxation advice Technical changes: Investment strategies and insurance Off market restrictions Valuation guidelines Artworks and collectables Limited recourse borrowing Penalties Proof of identity checks

Administration Regulator actions, ATO and ASIC Treasury and revenue and super – investing in the markets Tax free pensions Use of non-superannuation strategies Competitors in the market Difficult market to penetrate

New entrants – likely success or otherwise? Purchase of fund administrators – Concentration of administrators with the bigger players – AMP acquisition of Cavendish – Other acquisitions? Impact of new technology – SuperStream – Developments in administration and audit technologies

Sector poised for growth - coming from a new segment -Middle Australians and change in demographics for SMSF members Traditional ‘advice’ model redundant -Reposition to financial mentor Contribution caps are stifling growth -In retirement income & in National savings ($15bn less pa) Providers need to break the ‘product’ mindset -ETFs; a low cost implementation solution Trustees have a right to quality information and services -Genuine desire to be responsible decision makers -Genuine requirement for competent specialist SMSF advice Use concessions when you’ve got access to them Lessons learned from the research…

Disclaimer This presentation is for general information only. Every effort has been made to ensure that it is accurate, however it is not intended to be a complete description of the matters described. The presentation has been prepared without taking into account any personal objectives, financial situation or needs. It does not contain and is not to be taken as containing any securities advice or securities recommendation. Furthermore, it is not intended that it be relied on by recipients for the purpose of making investment decisions and is not a replacement of the requirement for individual research or professional tax advice. This presentation was accompanied by an oral presentation, and is not a complete record of the discussion held. No part of this presentation should be used elsewhere without prior consent from the author.

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