Accountants turn to in-house advisers to better serve SMSF trustees

As the number of SMSFs continues to grow steadily, approaching 600,000 in the first quarter of 2019, accounting practices are employing in-house planners instead of referring their clients externally, Investment Trends' 2019 SMSF Accountant Report revealed. 

According to the in-depth survey of Australian accountants in public practice who service the SMSF sector, the number of accountants employing advisers has risen to 48 per cent in 2019, from 41 per cent in 2014. 

Only 25 per cent of Australian accountants are sending their SMSF clients to external parties, down from 36 per cent, Investment Trends said. 

“Rather than referring their SMSF clients elsewhere or providing financial advice services themselves, many accountants believe an in-house financial planner can most effectively service their SMSF clients,” said King Loong Choi, senior analyst at Investment Trends.

"Accountants with in-house expertise have had greater success in servicing SMSFs than those who refer clients externally," Mr Choi added.

Currently, those with in-house planning expertise typically service more SMSF clients (71 versus 45) and derive a larger proportion of their income from SMSFs (22 per cent versus 19 per cent).

Among SMSFs looking for a new adviser relationship, their top selection criterion is an adviser’s expertise in SMSFs (46 per cent cite this), ahead of integrity (42 per cent), low fees (38 per cent ) and value for money (35 per cent).

“For accountants, an SMSF specialist accreditation from a professional association can help assure clients of their ability, while at the same time equipping them with a tangible qualification and the requisite skillset and knowledge,” said Mr Choi.

Investment Trends' report is based on a survey of 894 accountants in public practice that was concluded in March 2019.