Olivia Long
The evidence shows that the vast majority of service providers to the SMSF sector are offering value for money, says Olivia Long, CEO of the SMSF administrators Xpress Super and SuperGuardian.
Long was commenting on a recent media article that suggested the SMSFs are being undermined by low cost platform providers charging high commissions and having close relationships with the banks.
“I find it very interesting that people that go to the trouble to look after their own superannuation are somehow going to be satisfied with a service provider that over charges and under delivers.”
“Common sense would suggest that people who are prepared to invest the time and effort to manage their own retirement savings are likely to be the last people to allow themselves to be short changed by their SMSF administrator.”
“In any industry there will always be some bad apples, but I am confident they are few and far between in our industry. After all, the number of trustees and members continues to rise at a solid rate, suggesting they are satisfied with the service they are receiving.”
Long says there is an increasing tendency for any business that “clips the ticket” when servicing people in the superannuation sector to somehow to be viewed as exploiting the consumer.
“The fact is they are offering a service and they are entitled to be rewarded for it. After all, there is no compulsion here: if you don’t like it, don’t use it!”
Long says it is true that people who set up SMSFs with low account balances can pay disproportionately higher administrative fees (depending on the provider). “But that’s the price they are prepared to pay to be actively engaged with their retirement savings.”
“This is why low cost providers offer a valuable service when trustees have smaller superannuation balances. We help keep the cost down and as their FUM grows they can ‘trade-up’ to a service provider offering a more flexible package.”
She says: “The fact remains that SMSFs have been proven to generate better investment returns with enhanced member engagement, and if low-cost providers can help facilitate this (albeit via commercial relationship with bank), then surely that’s a win/win for everyone.”