SMS002 Understanding SMSF Trustees

The subject aims to develop advisers’ knowledge and skills in behavioural finance and how this affects the decision making process of SMSF trustees. Students will examine the central tenets from the field of behavioural finance, particularly those findings that provide insights into psychological influences in investment decision‐making. Investors’ decisions are influenced by a range of factors, some of which operate beyond conscious awareness and may result in measurable, systematic biases in investment decisions.

For more information, please refer to the subject outline.

  • Learning Outcomes
    • At the completion of this subject, students should be able to:

      • Critically review relevant contemporary behavioural finance models.
      • Evaluate the application of different behavioural finance models in the adviser – trustees.
      • Research and explain factors resulting in measurable, systemic biases in investment decisions including differences between collective and individual decision making processes.
      • Analyse the impact of behavioural biases on SMSF fund management strategies.
      • Develop a methodology for mentoring and guiding SMSF trustees.
  • Subject Content
    • Topic Title
      Topic 1 Origins of behavioural finance
      Topic 2 Traditional and behavioural finance
      Topic 3 Emotional decision making
      Topic 4 Personality traits
      Topic 5 Risk perception and risk tolerance
      Topic 6 Behavioural portfolio theory
      Topic 7 Advising the behavioural investor
      Topic 8 Financial therapy
      Topic 9 SMSF trustee coaching and observational awareness

  • CPD
    • Kaplan Professional has assessed this subject. Click here for the following CPD hours applicable from 1 January 2019 on successful completion of this course. For subjects or courses completed prior to this date, please contact Kaplan Professional’s CPD Support team on 1300 527 526 or

  • Assessment
  • Prerequisites
  • Reading List
    • Prescribed Text

      Baker, HK & Ricciardi, V (eds.) 2014, Investor behavior: the psychology of financial planning and investing, John Wiley & Sons, Hoboken, N. J.

      Retailers of educational books include Co-op Bookshop and Boffins Bookshop. Texts can also be borrowed from the Kaplan library or other libraries. Details of required and further reading are provided in the subject room.  Purchase of any text other than a prescribed text is not required.