NEWS – Call for specific SMSF LRBA accreditation

NEWS – Call for specific SMSF LRBA accreditation

Call for specific SMSF LRBA accreditation

There is a suggestion that those involved in borrowing in self-managed super funds (SMSF), should hold specific SMSF Limited Recourse Borrowing Arrangement (LRBA) credibility’s. As Krystine Lumanta of selfmanagedsuper wrote recently
All parties, particularly lenders, involved in the limited recourse borrowing arrangement (LRBA) process for SMSFs should be made to hold specific designations, separate to the qualifications already available in the industry, an industry aggregator has said. “[SMSF borrowing] is specialised lending, so I don’t think every man and their dog should be allowed to write SMSF lending,” Outsource Financial chief executive Tanya Sale told selfmanagedsuper. “There should be a special accreditation for it going forward because you’re dealing with someone’s super. “That’s one thing I’m in favour of.”

Sale said understanding the complexities of SMSF borrowing in-depth would help avoid future blow-ups. “When [lending] first came about, the SMSF borrowing loan-to-value ratio (LVR) was in line with commercial transactions, so about 65 per cent to 70 per cent,” she said. “It should’ve remained there, but then lenders allowed it to go to 75 per cent, 80 per cent and beyond because there was such a massive opportunity and demand from SMSFs, but it should never have gotten that far.

“Then the unrest became known because it wasn’t done properly, so now we have a big opportunity to put the LVR back to where it should be; where it was designed to be. “That’s where we went wrong in our industry – the lenders allowed anyone to be a creditor.”

Commenting on the current environment, she said she had seen examples of high-quality borrowing specialists in the industry, including advisers and lenders. “For them, it’s been all about the client,” she said. MORE HERE

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Self-Managed Superannuation Service Providers in Australia. SuperBenefit provides a wholistic SMSF assistance, education and administration service continuum - 1. “assistance” is help of whatsoever nature where our overall SMSF experience and knowledge enables us to provide assistance/help without any legal (or “license”) limitations. 2. “education” involves providing knowledge through teaching, coaching and mentoring about all matters SMSF, including (but not limited to) investment issues such as equities and property, 3. “administration” encompasses all admin aspects of legally required SMSF trustee and member record keeping including (but not limited to) audit and ATO matters. In keeping with our key point that SuperBenefit does not provide Financial Advice, where issues arise from 1, 2, and/or 3 above Indicate a need for a legally authorized provider (such as a Financial Adviser) and the client does not have their own service provider, the client can utilize SuperBenefit’s ‘Connect Assist’ … SuperBenefit, in itself, does not provide Financial Advice, but it does provide the wherewithal for great SMSF service. WE do not provide Financial Advice or any other service that requires a legally authorized provider. However, where such advice or service is required we have our ‘Connect Assist’, a SuperBenefit resource we use to connect clients to a Licensed Advisor or other legally authorised service provider. Call us 0407 361 596, no obligation FREE Connection call to see how we can help you!
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