DIY super trustees need more training, says industry

The peak body for Australia’s superannuation industry has for called for a mandatory licensing regime to improve the skill levels of DIY super fund trustees.

The call for trustees to be required to hold a special licence or certificate of qualification is made in the Association of Superannuation Funds of Australia’s submission to a Federal Government review being conducted into self-managed super funds.

ASFA argues the measure is required because tax office surveys have shown that many DIY super fund trustees do not understand basic tenets of the superannuation regulatory framework.

Under the proposed change, new trustees would be required to prove they meet mandated levels of knowledge and experienced before being licensed to run their own fund.

“It is in the interests of prudent retirement savings policy that trustees of SMSFs be seen to be skilled with the necessary capabilities to run their own SMSF,” the ASFA says in its submission.

Further changes recommended made by ASFA to Superannuation Minister Nick Sherry include:

• Requiring trustees to provide an investment strategy document to each fund member which would be updated each year.
• Require accountants that audit DIY funds to have complied with specialised accounting industry competency standards.
• Increased qualifications for tax agents or other professionals that provide advice on the establishment of DIY funds.