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ISCOVER
Staff Reporter
Brokers that try to sell SMSF loans without having the proper education could negatively impact this lending sector.
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Speaking to The Adviser, Andrea Slattery, chief executive of the Self-Managed Super Fund Professionals' Association of Australia (SPAA), said some brokers saw SMSF loans as a “cash cow” and were trying to sell the loans to clients without any proper knowledge about the industry.
“Once you understand the intricacies associated with SMSF lending, selling these types of loans becomes very easy. However, if you are not competent in this lending space you can have a detrimental effect on the entire industry.
“The SMSF space is Australia’s fastest growing sector, there is a lot of money associated with this pace and, as such, a lot of opportunity for brokers. They just need to make sure they are well informed before they start handing out advice.”
Eight years ago, self-managed super funds accounted for little more than $50 billion, or 15 per cent of the then $350 billion pool of super assets. Now, the SMSF sector has more than $430 billion in assets, or 32 per cent of the total $1.3 trillion pool, in more than 457,000 funds, with an average balance of $916,000.
