Mr Shipton pointed out to the regulator’s failings when developing the SMSF fact sheet, which attracted attention from the time of its release in November 2019 for stating the average cost of running an SMSF was $13,900 and required about 100 hours of time each year.

“We acknowledge that disclosing only the average cost of running an SMSF in the fact sheet that was distributed as part of the pilot was not sufficient, even though, at that stage, this was the only cost figure available to us,” Mr Shipton said.

“We regret failing to seek a median cost figure before distributing the fact sheet.”

In a fact sheet released in October 2019, ASIC had expressed concerns that a growing number of investors are setting up SMSFs when they are inappropriate for their circumstances, and that not everyone can meet the significant time, costs, risks and obligations associated with establishing and running one.

ASIC deputy commissioner Danielle Press had said SMSFs may be an attractive option for investors wanting more control over their superannuation investment strategy, but it requires real skill, care and diligence to manage your own superannuation.

“SMSFs are not for everyone simply because not everyone can meet the significant time, costs, risks and obligations associated with establishing and running one,” she said.

But the fact sheet is understood to have been met with widespread surprise, confusion and shock by industry experts.

The SMSF Association had rejected ASIC’s $13,900 cost figure and suggested the cost was closer to $5,000, and soon after, the released ATO SMSF overview for 2017–18 had further clarified the figure.

The fact sheet was then grilled at the House of Representative committee, with MP Tim Wilson notably demanding that ASIC retract, correct and replace a fact sheet claiming the average SMSF requires $13,900 and 100 hours a year to run.

“Of particular concern is ASIC’s claim that it costs $13,900 annually to run an SMSF has been revealed to be sheer fantasy, as this figure includes investment and interest expenses,” Mr Wilson said.

“The fact sheet contains a number of absurd claims from ASIC, including that the cost of financing a loan for investments amounts to an administrative cost, and that more than half the maximum annual concessional contribution of $25,000 is spent on administration. It simply lacks logic.”

This comes as, recently, SMSF Association deputy CEO Peter Burgess said there are several figures being quoted out there about how much it costs to run an SMSF, but there are limitations when it comes to understanding the complete picture. The SMSF Association has flagged that it will seek to continue to develop more processes when measuring SMSF data and determining its operating cost.