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'Absolute lack' of broker understanding leads to SMSF education initiative

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Australian Broker | 05 Apr 2013, 08:00 AM Agree 0
The SPAA's new technical director is making it his personal mission to educate brokers about SMSF lending
  • Country Broker | 05 Apr 2013, 09:47 AM Agree 0
    It is not just brokers , many lenders assessenmt and credit staff are short on knowledge in this area
  • Moonae | 05 Apr 2013, 09:56 AM Agree 0
    Most good brokers who work in the SMSF space know what they are doing and work well with the Accountants and Solcitors. I find it is the Banks who struggle to handle these transactions with undertrained staff or staff working off rote procedure. I have also often needed to remind some so called SMSF specialists (Lawyers) of particular ATO alerts to avoid non complying transactions so, it is a bit simplistic to target brokers as a weak point of knowledge and expertise. If there is any ecucation needed, I think Lawyers , Accountants and Banks should be equally involved. Targetting Brokers as a weak link is a bit of industry wedge politics in an area where there are a lot of vested interests jockeying for share. I take little heed in so called experts putting down my professions knowledge in this area.
  • Chris C | 05 Apr 2013, 10:09 AM Agree 0
    and its not just lenders - agents and solicitors are also lacking in SMSF purchases and contract requirements. I have completed a number of SMSF loans and declined to complete some on viability. Note to SPAA though : your Certifictates of Diploma that you issue are a joke - everyone who sees mine see it as an advert for SPAA rather than a formal Training Qualification to be taken seriously.
  • Melbourne Broker | 05 Apr 2013, 10:35 AM Agree 0
    I have been doing SMSF loans for over 3 years. The biggest challenges I have come across are the banks not understanding what is required and thinking they can do what they want. Documents from solicitors at times have left a lot to be desired. I think this comment is just a blatant advertisement for their training course. Great way to generate interest by alientating the very group you wish to target.
  • Jim W | 05 Apr 2013, 10:58 AM Agree 0
    I know I am a cynic.
    Just another attempt to make money from Brokers.
    I would suggest that denigrating us first, before asking for money is taking it a bit too far.
  • Concerned broker | 05 Apr 2013, 11:19 AM Agree 0
    This provides the MFAA another opportunity to makes a stand and protect the reputation and image of the broking industry. All these cheap shots at brokers are only doing harm.
    As many of the comments here, I've done a couple of SMSF loans and the most who need education and training are the bank staff. The assessors may be conversant enough, but the ones in the branches are to be undertaking education.
  • Banker | 05 Apr 2013, 11:54 AM Agree 0
    As someone on the other side of the fence, I think that this is a very good initiative. There are many brokers who specialise in this area and do a brilliant job, and are absolute leaders in terms of the knowledge, agreed.

    However I am alarmed at how many brokers are trying to write these loans (and probably being accepted by the lenders) who have little to no knowledge of the compliance requirements, and are likely to be unknowingly assisting clients into situations that are non-complying and not beneficial for the customer - Some of the scenarios we see put forward are scary!
  • Wayne | 05 Apr 2013, 02:30 PM Agree 0
    Who is the SPAA??
  • Lou Stergio | 05 Apr 2013, 03:33 PM Agree 0
    I agree with Moonae and the article, it is the larger bank owned broking firms and dealer groups that are struggling to keep abreast of SMSF legislation changes and requirements.

    Lenders and the legislation requires the Credit Rep to submitt a Statement of Advice (and sometimes the factfind) with the SMSF Limited Recourse Borrowing Arrangement (LRBA) application. Does the credit officer look at the SoA and comment on the advice given? No. The broker has no experience in financial planning advice nor cannot provide the SoA, so they must source it from a planner (Authorised rep). Then broker is liable for for the credit assistance provided regarding the LRBA and the planner the SMSF LRBA strategy advice.
  • Broker | 05 Apr 2013, 06:08 PM Agree 0
    Personally, I rather flick it to a business banker for 0.5% upfront and no trail , as I cant be bothered doing them , it's way too time consuming for the commission paid
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