Superannuation Warehouse is an accounting firm and we do not provide any form of financial advice to our clients. All information provided on this page has been prepared without taking into account the Trustee’s investment objectives, financial situation or needs. Since July 2013, an Australian Financial Services License (AFSL) is needed for businesses to provide financial advice to clients. As Superannuation Warehouse does not operate under an AFSL, we do not provide any form of advice to our clients. Trustees need to be aware of their own financial needs and situation when setting up and operating their Funds.
Types of Advice
The two main types of advice SMSF’s Trustees may be after are:
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General Advice
General advice refers to advice that is provided to the client without taking into account the client’s personal financial situation, needs or investment goals.
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Specific Advice
Specific advice or personal advice is advice provided to clients taking into account the client’s personal financial situations, such as income and investment risk profile.
At Superannuation Warehouse, we do not provide any type of advice. We only provide clients with factual information on setting up, operating and taxation of an SMSF. Trustees are required to manage their own Funds and make their own investment decisions.
Traditional Financial Advice
Financial Advice is provided by a Financial Advisor or Planners. Financial Planners then charge a fee, either as an upfront payment and/or ongoing fees and commissions. With the traditional financial advice, clients are usually in constant contact with their financial advisors so that the advisors are up to date with the client’s investment goals and can therefore make the necessary adjustments if needed. There is a lot of human intervention when managing the portfolio in traditional financial services. Financial advisers will generally issue a Statement of Advice (SOA) to their clients highlighting the recommended investment portfolio the client should undertake.
ASIC Sample Statement Of Advice ASIC Sample Statement of Advice
The Hayne’s Royal Commission Review on Financial Advice
Back in 2017, the Royal Commission was established to enquire into misconduct in the banking, superannuation and financial services industry. This resulted to almost half of all financial planners exiting the industry. Up to this date, most people still do not want to use a financial planner. Former High Court Justice Kenneth Hayne highlighted six standards from the recommendations he made in early 2019 during his time overseeing the Royal Commission:
| Obey the law | Do not mislead or deceive | Act fairly |
| Provide goods or services that are fit for purpose | Deliver goods or services with reasonable care and skill | When acting for another, act in the best interests of that other |
You do not require financial advice when setting up an SMSF. When you are ready to set up an SMSF, you can submit an application on this link.
