Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter

Major bank signs SMSF lending guidelines

National Australia Bank has signed two separate guidelines on lending and advice developed by the SMSF Professionals’ Association of Australia for SMSF limited recourse borrowing arrangements (LRBAs).

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.

Advertisement
Advertisement

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.”

Major bank signs SMSF lending guidelines
mortgagebusiness

Latest News

The corporate regulator has proposed to use its product intervention powers to address “significant detriment” caused by continuing cre...

The federal government’s fund manager has paused investment rounds on the $2-billion Australian Business Securitisation Fund in light of c...

The banking sector’s commitment to extend loan repayment holidays for distressed borrowers could prolong the deterioration in credit quali...

FROM THE WEB
podcast

LATEST PODCAST: Support for current broker remuneration model

Do you expect COVID-19 to reduce or increase your business flows?

Website Notifications

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