In the submission, released yesterday, CBA stated financial literacy is a key component of encouraging investors to make informed decisions about their finances.
CBA recommended financial literacy programs be developed for SMSF trustees to ensure they can assess the economic viability of an SMSF structure for them.
“Potential SMSF trustees should also be able to assess the administrative and financial requirements that come with SMSFs,” the submission stated.
CBA also identified various superannuation regulatory issues to be reviewed by the inquiry, including the need for consistency of regulation across all super funds in light of the growth in the SMSF sector.
“The growing size and importance of the SMSF market suggests Government should ensure regulatory mechanisms are in place to provide appropriate supervision of the sector as a whole,” the submission stated.
“In the longer term, Commonwealth Bank believes an optimal model of regulation involves applying consistent regulatory controls across all funds.”
The government and regulators should also be monitoring a number of “developments”, CBA stated, such as the ability of trustees to make appropriate financial decisions that suit their needs, the ability to enter borrowing arrangements and the size and growth rate of the market.