Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Peter Kell, ASIC Commissioner, on SMSF regulations

Peter Kell is a Commissioner at the Australian Securities and Investments Commission (ASIC). On 10 April, 2013, he spoke at the CPA Australia SMSF conference.

In September last year, he became one of two ASIC Commissioners responsible for heading up ASIC’s SMSF taskforce, so when he speaks on SMSFs, it worth listening.

He focussed on three key things:

  • the critically important role of gatekeepers in the SMSF sector, including the new, limited licence for accountants and the registration of SMSF auditors
  • ASIC’s focus on SMSFs and the recent review of the quality of advice provided to SMSF investors
  • working together to ensure that the SMSF sector remains healthy, vibrant and safe for investors.

His speech is here, and some short extracts follow.

"ASIC’s primary role in relation to SMSFs is to regulate the gatekeepers – the accountants, financial planners, SMSF auditors and providers of products and services to SMSFs. Secondly, ASIC also regulates many (but not all) of

the financial products that SMSFs commonly invest in. From that perspective, we are very keen to ensure that SMSF trustees are adequately equipped to make good investment decisions by being fully informed about the risks and returns."

"Currently, reg 7.1.29A of the Corporations Regulations 2001 permits accountants to provide advice on the establishment of SMSFs without the need for an AFS licence. This exemption will cease on 1 July 2016, and from that date all accountants who wish to give advice on SMSFs will need to be licensed."

"As part of the Stronger Super reform initiatives, ASIC became the registration body for approved SMSF auditors from 31 January 2013. This reform recognises the key gatekeeper role that approved SMSF auditors play... Since the introduction of the SMSF registration regime, ASIC has received 2,934 applications and we have registered and approved 1,178 SMSF auditors."

"We were also concerned by several developments, including an increase in geared investment strategies and increasingly aggressive advertising for SMSFs. Finally, we have seen an increase in the targeting of SMSFs by less scrupulous operators, and we are keen to address this risk."

"Through our file reviews, we found that there is room for significant improvement in aspects of the SMSF advice giving process. Where we found problems with the advice it tended to be in the following areas:

  • the advice was not sufficiently tailored
  • replacement product disclosure was absent orinadequate
  • insurance recommendations were absent or inadequate
  • an inappropriate single asset class was provided to investors
  • suitable alternatives to an SMSF were not considered
  • there was inadequate consideration of the investor’s long-term retirement planning objectives.

Notably, we also found that investors were not warned about the very real risk of not having access to a statutory compensation scheme in the event of theft or fraud."

"Let me be very clear – a person requires an AFS licence if they recommend that an existing or proposed member of an SMSF purchase a property through their SMSF. This is because the vehicle through which the underlying investment is made is an SMSF and an interest in an SMSF is a financial product. It does not matter for licensing purposes that the underlying investment (real property in this case) is not a financial product. In the past year, we have seen an increase in the number of advertisements pushing property purchases through SMSFs. We do not want to see SMSFs become the vehicle of choice for property spruikers. Where we see examples of unlicensed SMSF advice we will be taking regulatory action."

In addition, on 18 April, ASIC released its report, "SMSFs: Improving the quality of advice given to investors", with link here. Mandatory reading for anyone involved in SMSF advice and management.

 

 

  •   19 April 2013
  •      
  •   

 

Leave a Comment:

RELATED ARTICLES

Does a declaration of trust satisfy SMSF separation of asset regulations?

More SMSF myths debunked

Red flags to watch out for when considering an SMSF

banner

Most viewed in recent weeks

Why spending more in early retirement can improve lifetime income

Conventional wisdom encourages retirees to preserve superannuation. But if those likely to qualify for the Age Pension later in life spend a little more today, it may deliver higher lifetime income and a more stable retirement.

Testamentary trusts have secured the CGT exemption

Treasury’s latest CGT reform draft delivers a win for testamentary trusts and deceased estates, exempting estate-derived gains from the 30% floor. However, questions on death and divorce rollovers remain unresolved.

Meg on SMSFs: What do we think about reversionary pensions these days?

Reversionary pensions have long been a staple of SMSF estate planning, but are they still the best option? Meg Heffron revisits a once-clear favourite and asks whether changing super rules have shifted the balance.

Is it time to bail on Australian stocks?

For generations, Australian investors have backed banks, miners and dividends. But has that loyalty come at a cost? A look at the numbers raises an uncomfortable question about where future returns will come from.

Testamentary trusts survived the trust tax. The drafting battle has just begun.

The fight over testamentary trusts looked settled. Then the draft legislation arrived. Hidden in a technical detail is a question that could force many families to rethink wills they thought were already future-proof.

How does the 4% rule stack up?

The 4% rule has long been retirement's gold standard. But after a difficult period for investors, fresh analysis suggests a more conservative approach may significantly improve the chances of making savings last.

Latest Updates

Planning

How the typical Australian Family could save $844,350 in taxes

The value of a testamentary trust is not determined by wealth alone. Depending on circumstances, it can reduce the tax burden on inherited income, create efficiencies and help build intergenerational wealth.

Superannuation

There's a reason why your super is locked up until your 60s

For decades, it seemed settled. Then one controversial idea reignited a debate that could reshape the financial future of millions. The real question isn’t who’s right or wrong, but whether a long-held assumption deserves another look.

Property

The housing slide could become a crash

House prices are sliding across Australia, yet the most dangerous ingredient for a housing crash is still missing. If job losses surge amid growing economic risks, today's correction could become a historic property downturn.

Retirement

Under-retiring: The greatest retirement risk in a generation

Two retirees. Similar savings. Completely different lives. New research from Challenger reveals why some Australians confidently spend in retirement while others hold back and the overlooked factor shaping retirement decisions.

Five risks to watch in markets

Things you may often hear are: a recession is around the corner, markets are overpriced, the AI sector is about to flop at any moment. It’s like the never-ending laundry pile that sits in my house, it never really disappears.

Investment strategies

Do you qualify as ‘rich’?

What does it mean to be 'rich'? For something so universally desired, it is surprisingly difficult to define. That ambiguity creates a challenge for investors and raises a bigger question about what financial success really looks like.

Investment strategies

If you’re worried about your bond portfolio, you’re missing the point

Most investors think they know what bonds are for. But when markets turn volatile, a surprising misunderstanding can lead to costly decisions. Here’s the overlooked lesson that could change how you view your portfolio.

Alliances

  • ASA-Logo-RGB-ActiveGreen-web.png

© 2026 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.