InvestorDaily requested comment from ASFA in relation to collapsed SMSF accounting firm Charterhill, first reported by InvestorDaily sister publication SMSF Adviser on 24 January.
While the association could not comment specifically on Charterhill, ASFA chief executive Pauline Vamos said investors “must be wary”.
“There are some gaps in the consumer protection framework for SMSFs and investors must be wary as a result,” Ms Vamos said. “The law assumes that SMSF trustees are sophisticated and knowledgeable investors and, as such, are able to look after themselves.”
O’Loughlin’s Lawyers, who are representing at least 15 Charterhill clients, told SMSF Adviser that many of Charterhill’s clients were ‘mum and dad’ investors.
“The average creditor that we are seeing is between $80,000 to $120,000,” O’Loughlin’s Lawyers partner Kym Ryder said.
Ms Vamos said that when looking at any investment, including property, it is wise to get advice from a licensed financial adviser.
“That way, there is some protection for trustees of SMSFs in the form of oversight of the licensee by ASIC, as well as access to the Financial Services Ombudsman,” she said.
