There is continuing concern and further warnings by ASIC, SMSF Professionals’ Association of Australia (SPAA) and Association of Superannuation Funds of Australia (ASFA) for people to be wary of property spruikers who are offering great incentives to invest in property in an SMSF structure with seeking professional advice or getting at least another professional opinion.
Damon Taylor writes at SMSF Essentials – “Concerns raised by the Australian Securities and Investments Commission (ASIC) about the aggressive marketing of geared property investments are shared by SPAA, according to SPAA’s senior manager, technical and policy, Jordan George. “There is a role for gearing in a self-managed super fund (SMSF) – but only where trustees have access to best-practice advice from an adviser who is licensed and properly qualified,” he said. “In a recent speech to The Tax Institute’s National Superannuation Conference, ASIC Commissioner Greg Tanzer expressed concern that some trustees were not receiving such advice, simply reinforcing what SPAA has been saying on this issue for the past year.” READ MORE HERE
And an article at IFA reports – “The Association of Superannuation Funds of Australia (ASFA) has called for property spruikers and SMSF set-up advisers to be subject to AFSL conditions. In a statement issued yesterday, ASFA said the licensing – or lack thereof – of the SMSF sector is a major concern, given reports of SMSF members being “offered luxury international holidays” in exchange for buying property through their fund. For some time now, ASFA has been concerned about the growing number of people being targeted by schemes which offer attractive incentives up front at the expense of good retirement outcomes down the track,” said ASFA chief executive Pauline Vamos. READ MORE HERE
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