LRBA uncertainty impacting brokers’ SMSF activity
The uncertainty of SMSF lending following David Murray’s recommendation to ban it in the Financial System Inquiry has seen a reduction in broker interest in this space, according to the Mortgage and Finance Association of Australia (MFAA).
Speaking to SMSF Adviser, MFAA chief executive Siobhan Hayden said the broking industry is concerned about David Murray’s recommendation and is awaiting a response from the market.
“I think indicatively we’ve seen a reduction in overall enthusiasm for that type of lending and training in that space,” said Ms Hayden.
“There’s still [support] in the industry in relation to the use of limited recourse borrowing arrangements but I think there’s concern it might be removed.”
Ms Hayden said the MFAA will continue to support SMSF lending through the training program it provides for SMSF lending, which is sponsored by lenders and supported by aggregators.
She noted a decline in registrations for this training, however, attributing this to the market uncertainty.