Royal Commission and its one canoe message is on point

Challenger chairman of retirement income Jeremy Cooper said the Royal Commission's outstanding lesson for SMSF advisers is to keep their feet in one canoe.

Speaking on the final day of the Self-managed Super Fund Association's national conference in Melbourne, Cooper said Commissioner Kenneth Hayne's "lovely" assertion that intermediaries cannot stand in more than one canoe is the key takeaway from the Royal Commission for SMSF advisers.

"You can just imagine, one foot in one canoe and one foot in another," Cooper said.

"What he [Hayne] means is that an intermediary has to have a duty to the client, and not the product provider or commission payer.

"Of course, good smurf (SMSF) advisers already know that."

He said regulatory changes are generally about the bottom quartile or decile of actors in the industry, and recognised that those present in the crowd were likely in the upper echelon of SMSF advisers.

"The sort of advisers who bother turning up to events like this are, really, going to probably thrive out of these changes," Cooper said.

Soon after Cooper's comments, Assistant Treasurer Stuart Robert addressed the strong final day crowd. He said the Federal Government wanted to see the SMSF industry grow.

Robert said Labor's franking credit policy was entirely aimed at the SMSF sector, and intended to shrink it by forcing people into APRA regulated funds.

"90% of the franking credits the Labor Party are seeking to claw back are from self-managed super funds," Robert said.

"My cautionary message to you is this. In terms of where we're going on super policy, there couldn't be a (more) stark choice between those who seek to support, and those who seek to take."

Read more: Royal CommissionJeremy CooperChallengerAssistant Treasurer Stuart RobertCommissioner Kenneth HayneLabor PartyFederal Government
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