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Liam Shorte, director of SONAS Wealth, said while an SMSF is “right for the right person”, the approach, advice and cost disclosure must all check out first.

“Too often, what looks like helpful advice is really a cleverly disguised sales pitch designed to get you to move your super so the promoter can sell you their product, charge high fees, or worse, put your retirement savings at risk,” Shorte said.

“The ATO is watching this space more closely than ever, and the consequences for getting it wrong as a trustee are serious and personal.”

Shorte said that legitimate SMSF advice starts with a person’s situation not the adviser’s product and a proper adviser asks about retirement goals, risk tolerance, existing super balance, insurance needs, available time, and whether an SMSF even makes sense for your circumstances.

“Only then do they make a recommendation. The product-led approach works the other way around,” Shorte said.

“The SMSF is not the goal, it is the vehicle. Someone wants to sell you a property, a managed fund, an unlisted investment, or a crypto platform. The SMSF is simply how they access your superannuation balance.”

Shorte continued that there are warning signs that should alert SMSF trustees about unscrupulous operators and it starts from the way in which trustees are approached.

Care should be taken, he said, if it is unsolicited contact such cold calls, emails, social media ads, or “free seminars” promising to “unlock the power of your super”.

Additionally, the pressure to act fast with phrases like “limited time offer”, “EOFY special”, or “get your money out before the rules change” should also raise an alert.

So should promises that sound too good to be true such as guaranteed returns, easy access to your super before retirement, or “we’ll handle everything so you don’t have to lift a finger”.

“There should not be a focus on a single product like a specific property deal, crypto scheme, or investment the promoter (or their related parties) controls,” he said.

“Nor should there be a referral chain where the adviser, accountant, mortgage broker and property manager all recommend each other and all earn from the same transaction. If the conversation quickly moves to rolling your super into a new SMSF so they can ‘invest it for you’ or ‘help you buy that investment property’ — stop. That is usually the gateway to selling their product, not acting in your best interest.”

Shorte said there are some precautions SMSF trustees can take to ensure they do not become victims to dodgy schemes, and a quick licence check is a must before doing anything.

“Anyone who recommends you set up an SMSF must hold an Australian Financial Services LIcence, or be an authorised representative of a licensee. This is not optional — it is the law,” he said.

“You can check for licences on the ASIC Financial Advisers Register (moneysmart.gov.au) or on the Tax Practitioners Board register (if they are advising on tax matters). If there is no licence, walk away immediately and consider reporting them to ASIC.”

The next thing to consider is whether the operator provides genuine education or just “hype”, said Shorte, adding that real SMSF education explains the responsibilities, not just the glamour.

“Any adviser worth trusting will make sure you understand what you are signing up for before you commit to anything,” he said.

“Proper education must cover the sole purpose test, arm’s length rules, annual audit obligations, investment strategy requirements, record keeping and valuation duties and your personal liability as an SMSF trustee.”

Furthermore, Shorte said, it is best to demand a written fee disclosure before proceeding with any decisions.

“Total fees should be expressed in dollars and as a percentage of your fund balance. A side-by-side comparison between the SMSF and your current super fund, after all fees and tax should be given,” he said.

“Also, a full disclosure of any referral fees, commissions or benefits the adviser or their network receives and confirmation that ATO administrative penalties are your personal liability — not payable from fund assets.”

He said if a trustee is approached unsolicited and the conversation starts with a product, the starting position is one of conflict of interest. 

“Understand the full annual cost (typically $3,500–$6,000+) and compare it to your current fund before deciding. The most common contraventions are member loans, in-house asset breaches and non-lodgement — all carry personal penalties,” Shorte said. 

“Always verify licences, demand a written SOA, and get an independent second opinion. The ATO will find non-compliance. Trustees cannot hide behind their accountant or adviser.”

Keeli Cambourne
April 28, 2026
smsfadviser.com