High fees deter accountants from using platforms for SMSFs
Thursday, 28 August 2014 12:15pm
By Laura Millan  |  In SMSF

Accountants see high fees and costs as the main barrier to use investment platforms with their self-managed super fund (SMSF) clients, according to Investment Trends research.

The 2014 SMSF Accountant report shows that 76% of advisers think is inappropriate for SMSFs to use investment platforms due to costs and fees.

However, that number is down from 84% the last survey in 2013.

When asked for the reasons why platforms are appropriate for SMSFs, the most popular answer was consolidated reporting (49%), followed by access to wholesale funds and rates (44%), easier admin (44%) and ease of reporting (42%).

Advisers who said that an investment platform is most suitable for SMSFs argued that it allows good reporting (46%), is easy to manage (39%) and has good admin (34%).

The survey shows that accountants are increasingly unfamiliar with the way investment platforms work.

In 2013, 10% said they were "very unfamiliar" with platforms, and the figure was up to 22% in the 2014 report.

"This shows that more accountants are thinking about investment product advice and they realise that they don't know enough about platforms as they thought they did," Investment Trends senior analyst Recep Peker said.

But the number of accountants that see platforms to be appropriate for their SMSF clients remains steady at 57%.

The survey also looked at accountants' usage of external solutions for SMSF administration and found that 56% would prefer to use a "one stop shop solution."

The report surveyed 1,289 accountants who provide SMSF advice.

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