Powered by MOMENTUM MEDIA
subscribe to our newsletter

Former CBA exec argues case for less SMSF regulation

A former CBA executive believes regulators should not muscle in on the SMSF space and trustees should be free to make mistakes with their retirement savings.

During a panel discussion at the Australian Securitisation Conference in Sydney last week, former CBA senior executive and current interim director at the Australian Centre for Financial Studies, Rodney Maddock, argued his case for the “philosophy” of self-funded superannuation.

“The philosophy around SMSFs is that people should be allowed to make their own mistakes,” Mr Maddock said.

“If these people want to lend at 18 per cent to this bloke to start a garage down the road, well, the philosophy of having a self-managed super fund is that people should be allowed to do that,” he said.

“In the self-managed space, I really don’t see a place for the regulators to play strongly as long as information is clearly provided and truthful. That’s the obligation we have to the self-managed sector.”

Advertisement
Advertisement

PROMOTED CONTENT


Fellow panellist Oliver Harvey, ASIC’s senior executive leader of financial market infrastructure, questioned Mr Maddock’s position, pointing to the simplistic view of the “philosophy”.

“There are social implications for a merry band of retirees getting it horribly, horribly wrong,” Mr Harvey said.

“Where that responsibility ultimately ends up in a socio-political environment, it is never quite as simple as saying, ‘Well, I’m sorry you made a couple of bad mistakes at the end of your financial life, I wish you all the best’.”

Mr Maddock said the pension is still available for those with “bad luck”.

[Related: APRA tipped to target SMSF loans]

Former CBA exec argues case for less SMSF regulation
mortgagebusiness

Latest News

While some ASIC commissioners first learned about the proposal to scrap responsible lending laws after it was announced, APRA knew about th...

The major bank has confirmed the details of its new offering under phase two of the government’s Coronavirus SME Guarantee Scheme. ...

During the week ended 25 October, there were a total of 1,456 capital city homes taken to auction, the largest volume of auctions seen since...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: Court cases and penalties

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.