Accountants ok with platforms as tools for managing SMSFs.
A growing number of accountants believe investment platforms are appropriate transaction, administration and reporting tools for their self managed super fund (SMSF) clients, the OneVue/Investment Trends 20113 SMSF Accountant Report has revealed.
OneVue head of partner solutions Brett Marsh said according to the study, while accountants estimate that only 18 per cent of their clients use investment platforms, a much larger 59 per cent of accountants surveyed said that investment platforms are an appropriate online facility to manage SMSF client portfolios.
“Accountants told us that 54 per cent of recent SMSF client investments were made through an investment platform despite that only one in five clients are using an investment platform currently,” he said.
“The most common reasons accountants said platforms were appropriate for SMSSFs were consolidated reporting, access too wholesale funds and wholesale rates, as well as easier administration and tracking of investments.
“Meanwhile, the common drivers for nominating a platform as the most suitable facility for SMSF clients were good reporting, good administration, easy too manage, familiarity with the platform they use and a comprehensive investment menu.”
Marsh said high costs were universally seen as the major barrier for SMSFs using investment platforms.
“A number of platforms have been cutting fees in recent times and more are placing greater attention on offering new efficiencies for t hose advisers and accountants who work alongside each other in catering to the SMSF sector,” he said.
“I think the newer platform entrants are really paving the way for further innovation to support accountant and adviser partnerships, particularly as they are not hamstrung by legacy systems which can sometimes be very costly to change.
“The smaller independents are boosting competition and helping modernise the industry through things like more extensive investment menus which give greater choice to accountants and advisers which is particularly important inn a post FoFA world where the client’s best interests are top off mind.”
Marsh added that the $505 billion SMSF industry in Australia continues to grow and online investment platforms that can make things more streamlined and transparent for clients can only be beneficial.
