Size shouldn't matter to regulator
ASIC's concerns about the size of SMSFs and the possibility of placing minimum size limits on SMSFs, need to be addressed, according to the Institute of Public Accountants (IPA)
"It's not the size of the SMSF that matters; it is how well the fund is managed and how investments perform that should be the key focus," said IPA chief executive officer Andrew Conway.
"The idea that fund performance should solely be measured by relative costs of administration misses the point.
"It is hoped that the incoming Government will be more 'hands off', the SMSF sector.
"As we know, the regulator is required to respond to and enforce government policy. We are hopeful the new Government will provide clear guidance to the regulators. The regulator needs to focus on issues like the quality of advice, removing conflicts of interest in the system and further education of trustees, not setting arbitrary figures.
"While funds with lower balances may be relatively more expensive to administer, the trustees of the fund may decide to wear such costs based on the fund's performance.
"Most people setting up an SMSF do so because they want control of their investments. Many trustees minimize costs by performing some of the SMSF functions themselves.
"Additional and unnecessary regulation only serves to increase the administration costs of SMSFs and should be resisted," said Mr Conway.