Regulatory emphasis on SMSFs

The superannuation industry is over-regulated although there should be more regulatory pressure on self-managed superannuation funds, says IFSA chief executive officer Richard Gilbert.

“The regulations keep rolling in and rolling in and we certainly don’t want any new regulations,” he told the FEAL Conference in Melbourne.

“But SMSFs are totally unregulated and there needs to be a much stronger push to regulate the accountants.”

Gilbert believes self-control is in favour in Canberra and that is why the segment is being left relatively free of regulations.

Credit Union Industry Association Advisory Committee chairperson Jan Edwards said deregulation in the banking industry had brought more regulation elsewhere.

“We moved from a broad oversight policy to a highly directive oversight policy across a broad range of businesses,” she said.

“In some areas, FSRA was a son of a bitch.”

Edwards said the regulations on some parts of the banking and credit industry just didn’t make sense.

“The credit unions thought deregulation was a great idea that would deliver a level playing field, but now we question that,” she said.

The regulators also came in for a blast from Gilbert, especially concerning ASIC’s latest survey on financial planners delivering advice on superannuation switching.

“Advice has been belittled (by the regulators) and that is a bad thing,” he said.

“ASIC has spent eight years putting in a regime of good advice and it is time for ASIC to say it is working.

“I think advice is in a good state.”

Gilbert also wants ASIC to look at call centres and the levels of advice being given there.

“ASIC has only looked at advisers, but it should be looking at the call centres as well,” he said.