[COMMENT: Interesting article on the results of a survey into the satisfaction (or otherwise) of SMSF industry participants.]
(30 Nov 2012, The Age, BusinessDay, p6, Max Newnham)
‘RESEARCH into self-managed super funds has given an insight into the attitudes of members of this fastest-growing sector of the superannuation industry. It also provides a big reason why traditional financial planners have been so eager to criticise SMSFs.’
‘The study was done by Rice Warner, an actuarial firm specialising in research for the financial services industry, on behalf of the Self-Managed Super Fund Professionals Association of Australia and fund manager Vanguard.’ <snipped…>
‘The main reasons given by trustees for being dissatisfied with financial advice included:
■ Advisers were more interested in the products they sold than the return for clients.
■ The advice given was too simple and general in nature and the cost could not be justified.
■ The financial advice provided by advice firms owned by fund managers was highly conflicted by what was on the approved list and platforms.
‘The survey also found a direct link between the level of satisfaction with advice and its cost. Seventy-five per cent of trustees recognised they needed strategic advice, rather than product-oriented advice, and were prepared to pay more than $2000 for it.’