SMSF Association calls for financial consumer protection reforms

The SMSF Association has identified five key areas for federal government action to improve consumer protection within the financial services industry. These recommendations come ahead of an expected announcement by Minister for Financial Services Daniel Mulino regarding new measures following the Shield and First Guardian collapses.

The Association is calling for reforms that target the root causes of consumer harm without restricting choice, stronger proactive regulatory oversight, and the establishment of a compensation scheme of last resort. Additionally, the body seeks to enhance access to affordable financial advice and ensure the sustainability of the advice sector, which includes many small businesses.

Separately, experts highlight the importance of succession planning for self-managed superannuation funds (SMSFs). Because superannuation benefits do not automatically form part of an estate and are subject to trustee discretion under the Superannuation Industry (Supervision) Act 1993, failing to implement binding death benefit nominations can lead to outcomes that deviate from a member's intentions.