In this latest CPD-accredited article from the 2021 Ethics Series, proudly sponsored by GSFM, the interplay between ethics and self-managed super funds is examined.
It was 1999 when self-managed superannuation funds (SMSFs) first became part of Australia’s superannuation landscape. Over the following twenty-plus years, SMSFs have become a significant part of Australia’s $3 trillion[1] superannuation sector, with $766 billion in assets at end 2020, representing one quarter of the total super sector. Bound by an array of rules and regulations, this article, sponsored by GSFM Pty Ltd, examines the ethical considerations for advisers recommending SMSFs to clients.
In 2020, the Australian Financial Complaints Authority (AFCA) investigated a number of cases linked to SMSFs. In one of its findings AFCA noted: “For advisers to ‘know your client’, they were required to make investigations into the client’s relevant personal circumstances, including the client’s needs, circumstances, risk profile and the time frame for the investment. Where advice is for an SMSF, it is important that the adviser consider both the personal circumstances of the members of the fund and the fund itself.”
To read the article and complete the quiz for 0.75 hours of ethics CPD, click here.
The views expressed are her own and do not consider the circumstances of any investor.
