As a financial advisor, you need to know about the changes in the SMSF industry and how they will affect you. We’ve created a quick SMSF industry update, letting you know what is happening in the industry and how these changes may affect investment going forward.
Trustees Opt to Go It Alone Navigating Complex Rules
Earlier this year, Vanguard released a report which showed that one of the prime concerns among SMSF trustees in 2017 was navigating the complex and ever changing rules and regulations associated with the fund. Despite this, we are still seeing trustees opting to go it alone and figure out the best course of action themselves. Only 38% of SMSF trustees now seek assistance from a financial advisor, down from 54% nine years ago. Concern over the quality of advice and the spectre of bad experiences in the past have been cited as two of the major factors behind this, and the rise of accounting and auditing software platforms have also given trustees more scope and capability to take care of duties themselves.
Contributions Continue to Rise
SMSF investment is at a very healthy level in 2017 and looks to be continuing to rise as we move into September. The June quarter of this year saw enormous increases in trustee investment, with average contributions soaring from $9,138 to just over $32,000. This tripling in the average level of investment has been credited to the changing of SMSF rules at the beginning of July, which made it more advantageous for trustees to invest. The last time investment levels have been this healthy was back in 2009.
Increased Focus on Cyber Security
If cyber security has left the front pages in 2017, it has never been for very long. Recently, it reared its ugly head again, this time with the news that criminal gangs, particularly those based in Eastern Europe, have been targeting SMSFs in Australia. This should not be taken as a reason to panic, however. Cyber crime is the new frontier for law enforcement. New breaches simply mean new measures must be taken to keep us and our money safe. Expect a renewed focus on cyber security and tighter measures in place to keep SMSFs safe as we move into September. To learn more about Cloudoffis and how it can help you to keep on top of your SMSF auditing, get in touch with our team today. We are waiting to hear from you.