Higher-balance members are turning to SMSFs through advisers because the level of service received from APRA-regulated funds can’t compete – and those members are willing to pay for the expense. 

CoreData founder Andrew Inwood told the SMSF National Conference in Melbourne as the balance of a member rises, their expectation of service quality rises with it, which industry funds can’t match. 

“If you’re in a large industry fund, you’re not actually getting service that you’re expecting. Everyone gets the same service,” Inwood said. 

“There’s no frequent flyer number, there’s no number for special people. It’s not like working with you [advisers] where they have a special relationship, where they call up and they expect to call back and it’s not like working with you where you understand their problems instead of going into a queue.” 

The CoreData research found members with balances over $300,000 are looking to move. “It spikes up and it spikes up really aggressively,” Inwood said.