The Minister for Superannuation and Corporate Law, Senator the Hon Nick Sherry, has commenced consultation with a range of industry organisations and practitioners about a range of practices in self managed superannuation funds (SMSFs).
"The Government is concerned where individuals are subject to aggressive marketing strategies and are persuaded to establish a SMSF without being aware of their role and responsibilities, and without appreciating the costs involved. This concern is not directed at any particular segment providing advice to the SMSF market," Minister Sherry said.
Ensuring appropriate governance is necessary given the significant growth in the sector to more than 368,000 entities, over 700,000 thousand members, and a total of greater than $300 billion in assets (one quarter of total assets).
The Government is closely monitoring developments in the SMSF sector to ensure that trustees, and potential trustees, are aware of the risks involved and provided the skills necessary to run a superannuation fund in a prudent fashion.
The Minister will be addressing the SMSF Professionals' Association of Australia Ltd (SPAA) National Conference in March on this matter.