Hi I am new to this forum but hope someone can help me. Hubby & I are just purchasing our first SMSF residential property. However when loan docs came from bank to sign, there was one requiring a sign off by a certified financial planner that they had advised us on the purchase. We did not use a financial planner as we both work in banking and are quite confident we know the risks involved in this investment strategy for us. I don't know if we should challenge the bank about this or try to find a financial planner to sign off? Any advice/ comments for us?
SMSF loan financial planner sign off
- Thread starter Sydniygirl
- Start date
which bank is this with? some banks require sign off saying you received independent financial and legal advice depending on the circumstances of the loan. This sign off might be the banks policy and you will have little chance of getting it waived.
Just go back to who ever set up your SMSF and tell them what you require. If they set it up for you they would know your circumstances and should be able to sign off without further time. Most professionals in this circumstance would do it for free or for a 6 minute billing charge to be added/buried in your year end cost.
It would take a lot longer than 6 min to explain. Any planner that signs off on such a document is at risk of being blamed if things go wrong so they would want to serious explain the risks and follow it up with something in writing to cover themselves.
However, I think these requirements are put in place by the banks just to push clients into the financial planning space in general. (i don't think a planner at the same bank as the loan would be able to sign off as not independent).
However, I think these requirements are put in place by the banks just to push clients into the financial planning space in general. (i don't think a planner at the same bank as the loan would be able to sign off as not independent).
It's St George.
We are submitting a few SMSF loans per month admittedly all to St George.You cannot challenge this no matter who you speak to. Just do it quickly so you don't lose time.
The funny thing is that I had 3 clients who "forgot" to send the form as part of the documentation and St George processed all 3 no issues.
We are submitting a few SMSF loans per month admittedly all to St George.You cannot challenge this no matter who you speak to. Just do it quickly so you don't lose time.
The funny thing is that I had 3 clients who "forgot" to send the form as part of the documentation and St George processed all 3 no issues.
AMP and others have similar weasel docs
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Thanks to everyone for your advice. I think we'll just have to find a financial planner who'll do a quick summary & sign off for us. The most frustrating thing about this whole SmSF thing has been the accountants and lawyers who try to rip you off. They try to scare you into appointing them or talk to you in a condescending manner. We Set the fund up ourselves and didn't want to use a financial planner as we know our own goals and financial constraints but will now be forced to go to one. You don't need to go to a financial planner to get a home or investment loan & yet these can be quite high risk. I understand for a bank a SMSF loan is higher risk due to the fact they only have recourse to the property and super fund assets but as lending criteria is stricter and LVR ratio lower for SMSF loans, I wouldn't think it anymore risky than someone on a low wage taking out a large 95% mortgage for example.
Oh I forgot loan is with St George. Been very good with everything else except for this.
The main reason would be the personal guarantee involved. You are guaranteeing someone else's loans
St George are excellent for SMSF loans. Couple of the other lenders are catching up slowly.
xcept that here the lender takes zero real capital risk.
The borrower has paid for lmi to transfer the risk to a 3rd party
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Just accept that with SMSF more paperwork is required.
A Financial Planner cannot simply sign off these documents.
Any personal advice a Financial Planner gives you must be in writing and in the Form of a Statement of Advice (SOA).
As a financial planner I wouldn't just sign these forms without a SOA as our compliance department and ASIC would eat me for breakfast.
I'd expect to pay in around the $2,000 mark just to get this signed off....
Any personal advice a Financial Planner gives you must be in writing and in the Form of a Statement of Advice (SOA).
As a financial planner I wouldn't just sign these forms without a SOA as our compliance department and ASIC would eat me for breakfast.
I'd expect to pay in around the $2,000 mark just to get this signed off....
This statement is 100% correct and 99% of financial planners would be saying the same thing. I think $2k is also base cost.
Legal and Financial advice, got to love it. Someone has to funnel a constant supply of work to these industries, otherwise doctors will keep beating them in the pay scales.
I've managed to get one lender to accept an offer of either legal or financial before, just because they wanted to get the deal over the line (it was severely delayed). Amazing how policy is bent sometimes.
I've managed to get one lender to accept an offer of either legal or financial before, just because they wanted to get the deal over the line (it was severely delayed). Amazing how policy is bent sometimes.
Have to disagree with Greedy on this one.
We do a fair number of these Financial Planning Statements of Advice Certificates for both our own SMSF clients and introductions from other Brokers.
A SoA is certainly not required.
You would expect to pay around $450 + GST.
Much more than that and the Planner is certainly taking advantedge of you.
SGB used to be good but in the last few weeks they have dropped the ball when it comes to SMSF loans.
I think you can do better these days than the Dragon.
We do a fair number of these Financial Planning Statements of Advice Certificates for both our own SMSF clients and introductions from other Brokers.
A SoA is certainly not required.
You would expect to pay around $450 + GST.
Much more than that and the Planner is certainly taking advantedge of you.
SGB used to be good but in the last few weeks they have dropped the ball when it comes to SMSF loans.
I think you can do better these days than the Dragon.
450 is 1.5 hours work and taking on professional risk, it should be more like 2500 +, maybe you should brush up on asic rg175
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