Sent: 20-07-2010 12:33:07
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Most Trusted Professions and Accessing the SMSF Market
Now that the Federal election has been called I thought I would discuss who is most trusted.
Many years ago in this column I referred to Roy Morgan Research.
This time around I'm referring to research found in Reader's Digest (July 2009).
I have extracted the following list:
1. Ambulance officers ...
16. Judges ...
21. Accountants ...
26. Financial planners ...
30. Lawyers ...
35. Journalists ...
38. Politicians ...
What really caught my eye were the following comments by Robert Gottliebsen on the Business Spectator website late last week:
... it is clear that the big institutions made a terrible mistake over the last decade in trying to get the government to place curbs on self-managed funds. They had hoped that the Cooper review would make life tougher for self-managed funds but in fact, apart from some sensible new rules, Cooper embraced them. Rather than oppose self-managed funds, the major funds should have developed products years ago that were attractive to them. Instead, high institutional commissions helped by some spruiking from the accountants fanned the self-managed funds boom.
The big institutions now have to do what they should have done five or ten years ago and move from a position of antagonism to developing products for self-managed funds. Again, not every institution will get it right because the way self-managed fund people think is very different from the big institutions.
Mr Gottliebsen is one smart dude and I think he's got the situation pretty right.
I agree that the big institutions are now having to play catch-up with SMSFs.
As Robert says, " the way self-managed fund people think is very different from the big institutions". This is a hard truth that will vex many an executive.
There is one other issue. Normally when large companies find themselves behind a market shift they buy back influence and marketshare by buying a few key players.
However these key administration players - many of whom have already been snapped up - do not really exist in the SMSF space. The key players in this sector have less than 15% of the SMSF market.
So the problem for the big instos this time is that they cannot get close to SMSFs without significant long-term resources and significant knowledge about SMSFs. It will be interesting to see how many have the patience to tap into this knowledge.
Finally please consider purchasing a copy of my book. You can look at the contents page at the following link: http://www.atcbiz.com.au/r.php?r=0mjd6ne
The second edition has just been released.
Two options are available - once only subscription - $55 inc GST - or an annual subscription will gives you access to all the updates made throughout the year ($120 inc GST). The book can be purchased at the following link: http://www.atcbiz.com.au/r.php?r=5a4agqb
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