BT Financial Group’s Bryan Ashenden questioned the level of “noise” concerning LRBAs and SMSFs at the SMSF Professionals’ Association of Australia national conference in Brisbane last week.
“We hear quite often when talking to advisers around the country there is a lot of noise, but certainly not as much action in terms of the full implementation of these gearing in super arrangements,” Mr Ashenden said.
“It’s not a surprise the numbers have gone up, [but] you’re coming off a very low base,” he added.
Mr Ashenden also indicated there is legislation in place to ensure financial advice is in a client’s best interest, and therefore there are “safeguards” to ensure appropriate arrangements are implemented in a self-managed fund.
Mr Ashenden’s comments follow Assistant Treasurer Arthur Sinodinos’s announcement that the government is not looking to conduct a specific review of limited recourse borrowing.
“We’re not looking to have a review specifically into limited recourse borrowing,” Senator Sinodinos said. “There is the financial [sector] inquiry, which is looking at the overall architecture of the financial system and as part of that it will also look at the role of the superannuation sector.”
Considering that Westpac is the major player in the LRBA area and happens to be the owner of BT and hence the employer that pays Bryan’s salary and puts food in his kids’ mouths, of course Bryan is going to say this. For all it’s worth, thank you Bryan for sharing your employer’s views with us.