Government urged to retrospectively review SMSF lending

Ms Bright said she believes it would be worthwhile for the government to look at what practices were occurring before lending conditions were tightened and further regulations were brought in.

“There were a few too many people on that gravy train before things got tidied up around SMSF lending and by that I mean property spruikers and people suggesting that customers open a fund just for property investment,” she said.

“There were a lot of people at that trough. There were a lot of people getting paid at that time for doing things that were totally unprofessional.”

ASIC has knocked on a lot of planners' doors about having one-size-fits-all advice and while some of it did come from that area, she said, a lot of it came from “brokers doing loans for anyone that came across their desk”, some of which were off-the-plan and from property spruikers.

“Those practices shouldn’t have been allowed and if the royal commission is able to stop that then that’s awesome,” she said.

Ms Bright said she generally welcomed the royal commission and the inclusion of brokers.

“In every industry we know there is an element of cowboys and if this is what it takes to clean that up then I welcome it, because there’s too many people doing the right thing to have people tarnish what the rest of us do.”