The Australian Securities and Investments Commission recently received feedback from The Australian Institute of Superannuation Trustees (AIST) and Industry Super Australia (ISA). According to the consultation paper “Advice on self-managed superannuation funds: Specific disclosure requirements and SMSF costs.” there is an alarming number of SMSF advice received by trustees, with most of them biting more than they can chew.
People with small accounts are investing in SMSF even if there is a huge disparity between cost and income. Another problem raised is the lack of diversity, as most investments are in real estate. An exit strategy should also be in place for trustee protection.
With the demand and popularity of property investments, spruikers are taking advantage of misinformed individuals without taking into account their current financial status. Investors are highly encouraged to get advice from legitimate and licensed financial advisers.
Read more about this on the Financial Standard website.