Next Storm could brew in SMSF
The corporate regulator has warned self-managed super funds (SMSF) could face serious dangers if investors and trustees do not do their due diligence.
Australian Securities and Investments Commission's (ASIC) deputy chair Peter Kell told a Financial Services Council (FSC) conference in Cairns SMSFs could expose investors to inappropriate borrowing strategies.
"We've seen first-hand the impact of inappropriate borrowing strategies," he said in reference to collapsed Storm Financial.
"We would want to ensure the risks in the emerging SMSF sector are administered."
But he said ASIC does not see a role for itself in guarding the sector.
"Ultimately the people who want to be involved have to take some responsibility," he said.
But he pointed out an ASIC taskforce had previously tackled some of the wider known SMSF issues such as property spruiking, and encouraging investors with a poor understanding of their operations to participate.
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