Two sets of guidelines have been developed for the industry – LRBA lenders’ best practice guidelines and LRBA advice best practice guidelines.
The lenders’ guidelines are intended to establish banking industry standards that can complement individual LRBA credit policy and practices regarding LRBA lending to SMSFs.
The advice guidelines propose a best practice standard of advice that should be provided to SMSF trustees considering the use of LRBAs if they elect to seek personal advice.
“NAB is the first lender to sign up for both guidelines, and SPAA is continuing to work with the other lenders in this space,” SPAA chief executive Andrea Slattery said.
“We are hopeful they will follow suit soon and adopt them,” Ms Slattery said, adding that SPAA has been “very conscious” of the concerns expressed about LRBAs by the Murray Inquiry.
“SPAA has always stood for best practice guidelines for the SMSF industry whether it be education, financial advice or auditing,” she said.
“The decision to adopt a similar approach to LBRAs is further evidence of SPAA’s commitment to building integrity for the industry and best practice behaviour for consumers.”