Self-managed superannuation funds (SMSFs) have become a popular way for people to take greater control of their retirement finances.
But while SMSFs can be a very effective vehicle for tax minimisation and wealth management, they can also be extremely complicated and nuanced.
This means it is essential to obtain professional financial advice in setting up and running your SMSF.
But what happens when good advice goes bad?
If you feel you have received poor, negligent or inappropriate financial advice from a licensed financial advisor or financial services firm in relation to your SMSF, there are several potential avenues for recourse.
The first is internal dispute resolution – lodging a complaint directly with the licensee. If you’re not satisfied with the outcome of this process, you can take your complaint to the Australian Financial Complaints Authority (AFCA).
It’s important to note that there is generally a time limit for lodging a complaint through AFCA, and your complaint must meet certain requirements. For example, AFCA will exclude complaints that relate to investment performance, except in cases of non-disclosure or misrepresentation.
If your complaint does fall outside AFCA’s requirements, or you have sought advice from an unlicensed firm, your best avenue for recourse might be the courts.
Guidance on the next steps
In these stressful times, it is more important than ever to obtain sound financial advice and to be able to rely on that advice to maximise wealth.
If you believe that you have received poor or negligent financial advice, including in relation to your SMSF, contact us today to discuss your options.