In an interim FSI report handed down this morning, the panel – which is chaired by former CBA boss David Murray – raised a number of issues in the financial advice sector that it is examining closely, requesting additional stakeholder engagement.
In particular, the panel is seeking feedback on raising the minimum education and competency standards for personal advice, including particular standards for more complex products or structures, such as SMSFs.
The panel also observed that, if allowed to continue, growth in direct leverage by superannuation funds may create vulnerabilities for the superannuation and financial systems.
“The general lack of leverage in the superannuation system is a major strength of the financial system. Although direct leverage in superannuation is small, the current ability to borrow directly may, over time, erode this strength and create new risks to the financial system,” the report stated.