Media Release
CPA Australia Ltd is one of the world's largest accounting bodies, representing 129,000 finance, accounting
and business professionals in Australia, Asia and Europe.
Monday 5 July 2010
Cooper Review: SMSF industry regulated enough, says CPA Australia
The government should not increase regulations for self managed super funds if it wishes to maintain the
flexibility and integrity of the SMSF sector, says peak accounting body CPA Australia.
“The Cooper Review has positioned SMSFs as an important sub-sector of the industry, said CPA
Australia CEO Alex Malley. It has silenced the naysayers and dispelled myths about the validity and
structure of self managed funds,. But the increased regulations recommended by the Super System
Review panel are inappropriate.
“CPA Australia has long believed that the vast majority of SMSF trustees are well informed and able to
manage retirement savings through a SMSF, and welcomes the Cooper Review’s findings on self
managed funds. The review found that SMFS are a robust retirement savings tool and should continue to
operate within the confines of the law much as they have been.
“However we don’t support the recommendation that ASIC be appointed set up a body to regulate SMSF
auditors, as almost all auditors are members of the three professional accounting bodies and operate
within a rigorous framework, which includes compliance with the law, having professional indemnity
insurance, being subject to strict competency requirements, and other significant checks and balances.
”An extra regulatory body requiring compliance which has already been demonstrated is unnecessary
and would raise costs and regulations for trustees,’ Mr Malley said.
“If the government is concerned about regulation it should require other bodies/auditors to adopt the
same competencies and standards required by the professional accounting bodies in order to undertake
SMSF audits or, stipulate that SMSF auditors must be a member of one of the three professional
accounting bodies.
“Given the positive findings of the SMSF sector, we are concerned by the recommendation to set up a
body to regulate SMSF auditors. This move would add a layer of expense and red tape to a SMSF
trustee’s work, arguably reducing their level of control over their retirement fund.”
CPA Australia also disputes that a financial services licence should be required in order to recommend
the establishment of a self managed fund.
“The government has already considered the accountants’ exemption as part of the Future of Financial
Advice reforms and proposed it be replaced with an appropriate alternative, including potentially a
streamlined licensing regime.
“CPA Australia urges the Government to continue with this course of action. Accountants play an
important role as trusted advisers in the community and are ideally placed to provide consistent
affordable superannuation structural advice to consumers, where it does not involve financial product or
investment recommendations,” said Mr Malley.
‘The super review has rightly highlighted the increasing complexity of the current system, and the need to
ensure individual workers are not disadvantaged by current fees and regulations. Superannuation, after
all, is becoming an increasingly important consideration for the economy as governments encourage
individuals take control of their superannuation balances to improve their quality of life after retirement.’
*Alex Malley is available for media comment
For media enquiries contact Dina Jaballah on 0423 501 501
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