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Warning on tightening SMSF regulations
The self-managed superannuation fund (SMSF) regulatory regime should not be tightened to such an extent that it acts as a barrier to entry into the sector, according to ING Australia.
In its latest submission to the Cooper Review, ING has argued that while some regulatory improvements to the SMSF sector might be justified, they should not alter the unique nature of the sector with respect to flexibility and control.
The ING submission said the company generally agreed with the chairman of the Cooper Review, Jeremy Cooper, that the SMSF sector was “in pretty good shape” with “SMSF members, on the whole, appear[ing] to be doing well in taking on a higher level of responsibility for their investment savings and achieving satisfactory net investment returns”.
The submission said that it was in this context that ING suggested retaining key features of the regulatory system as it applies to SMSFs, with some refinements to their operating environment to ensure they retain their unique qualities of flexibility and control while improving the integrity of the system.
“The challenge is to ensure that any new regulations do not have the consequence of making it too difficult or cumbersome for the trustee to execute its role or act as a barrier to entry to the SMSF market,” the submission said.
AUTHOR
Mike Taylor
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