The MFAA says it will commence training programs for credit advisers to extend their services into the SMSF sector with limited recourse borrowing on June 3.
The group has launched three different programs to provide credit advisers with the tools and knowledge to assist their clients in the project management of their SMSF Lending.
The programs will give participants an understanding of their role in setting up limited recourse borrowing arrangement’s (LRBA’s); ongoing management of the LRBA; how to ascertain the borrower’s lending capacity and strategies for debt reduction.
The MFAA estimates that direct property investment of SMSF now makes up more than 10% (worth $50 billion) of the 500,000 SMSF’s in Australia.
Phil Naylor, CEO of the MFAA, says the training programs are a way for credit advisers to understand the growing sector of SMSF lending and deepen their relationship with clients.
“The programs provide our members with an opportunity to expand their scope of services, as more than more than 3,000 SMSF are being established each month in Australia”, he says.
The training, delivered through MFAA Pathways, involves programs which range from providing credit advisers with an understanding of SMSF basics for up to ten hours of online modules and assessments, at a cost of $440.
Two, more extensive, programs include up to 30 hours of online modules, exercises, assessments and workshops, with status attained of MFAA Credit Adviser (SMSF) Accreditation, at a cost of up to $1,089.
The online modules combine audio and video sessions, assessments and learning checks, case studies, course notes and handouts, and ending with an optional workshop.
A free 30 minute video-on-demand explaining the program in detail is still available for credit advisers to view on the MFAA website www.mfaa.com.au.
The MFAA is urging its members to develop a network of professionals, like financial planners, accountants and legal firms, who can work together in their establishment and tax issues that flow from the training programs.
“With the success of SMSF borrowing relying heavily on credit approval from lenders,” says Naylor, “it makes sense for credit advisers to play a key role in project managing the SMSF lending to ensure all of the lender’s requirements are met from outset.”