What SMSF Skill level are you? Dangerous or Dynamic?
For any skill, from riding a bike to advising on SMSFs there are four levels of competency. At the bottom is absolute incompetence and we have all seen this when our children first start to ride a bike. Sitting in a balanced state is hard enough but through trial and error, time and sheer determination bike riding becomes a learned skill. For most of us today it is a simple effort to jump on a bike and ride. It has been programmed into our brain and we can unconsciously produce our bike riding skill with ease no matter what situation.
But, and this is the big BUT. How does your bike riding skill level compare to last years winner of the Tour de France. Even the best recreational bike rider, who would be seen by the novice to be a “legend”, would not be able to mess it up with the pro-riders.
Different standards require different competencies.
What is competency?
Competency is the demonstration, whether in action or mind of a desired skill level.
However competency, like beauty is the eye of the beholder.
For example, a client may say that Julie is a competent accountant. Now from their level of accountancy knowledge Julie may be an absolute whiz but from what is required of Julie to be a professional accountant, as determined by objective competency standards set by one of the accounting associations she may be hopeless.
The four competency levels
- Unconscious incompetence
- Conscious incompetence
- Conscious competence
- Unconscious competence
The SMSF advice competency standards
At it’s core was the provision of protection for consumers in terms of financial products. This is seen in section 760A of the Corporations Act 2001. For the first time self managed super funds, which had only started ten years earlier, were brought into the realm of financial services.