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ISCOVER
Staff Reporter
The Mortgage & Finance Associtation of Australia (MFAA) has detailed plans to start training credit advisers in the fast growing self-managed super fund (SMSF) space.
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According to new statistics from the MFAA, direct property investment within SMSFs now makes up more than 10 per cent, or $50 billion, of the 500,000 SMSFs in Australia.
As a result, the industry body is keen to help brokers understand and get more involved in the space by providing a series of training workshops.
The training involves two different programs, catering to those who simply want an understanding of SMSF lending and limited recourse borrowing, and to those who want to both understand and project manage the SMSF lending process.
“The training programs represent a terrific opportunity for ambitious credit advisers to expand their range of expertise and scope of service for their clients, many of whom are weighing up the opportunities of investing their superannuation directly into property,” MFAA chief executive Phil Naylor said.
“More than 3,000 SMSF are being established each month in Australia and, with the proper training, credit advisers have the opportunity to deepen their relationships with clients through broadening their product and service offering.”
The training program is expected to commence in early June and involve a series of modules using a combination of audio and video sessions, assessments and learning checks, case studies, course notes and handouts, and ending with an optional workshop. Completing the program requires a significant investment of time with the average commitment expected to be 30 hours.
“At the end of the programs, participants will have a thorough understanding of their role in setting up and managing SMSFs, understanding borrowers’ investment strategies and the risks involved, project management of the process, debt reduction strategies, continuity and liquidity reviews,” he said.
“This is a fast growing segment of the market where credit advisers can project manage the process, from establishing an SMSF to the ongoing management of the investment property, in consultation with the legal advisers and planners/accountants of the client.
“With the success of SMSF borrowing relying heavily on credit approval from lenders, it makes sense for credit advisers to play a key role in project managing the SMSF lending to ensure all of the lender’s requirements are met from the outset.”
