Investment watchdog about to embark on crackdown on property spruikers targeting SMSFs.

According to a report in the Australian Financial Review today, the Australian Securities and Investment Commission is readying for a major crackdown on property spruiking to Self Managed Super Funds (SMSFs).

It follows a recent Federal Court ruling that confirmed the commissions’ view that property spruikers who promote or recommend investors to establish a SMSF are carrying on a financial services business and requires a licence.

According to Commissioner Greg Tanzer, property spruiking is the “largest concern” in the sector with unscrupulous spruikers draining superannuation savings into highly leveraged, speculative vehicles. An earlier review by ASIC found only 1 percent (yes, one percent) of SMSFs were getting “good” advice about leveraged property investment.

He concedes the problem has increased remarkably since SMSF were allowed limited recourse borrowing in 2009. This legislation has created quite a headache for regulators at the coal face.

The David Murray Financial System Inquiry report recommends to reinstate restrictions on SMSF’s access to limited recourse borrowing arrangements (LRBA), suggesting it could pose a significant risk to the economy.

» Regulator cracks down on property spruiking to self managed super funds – The Australian Financial Review, 4th May 2015.
» Alarm bells ring as self managed super funds spruiked as vehicle for leveraged property – Who crashed the economy, 15th November 2012.


  1. I would prefer the whole system with SMSF to stop altogether. It is biased, hypocritical and corrupt to allow anyone to use what is supposedly their retirement income for investments while the majority of us are not allowed to use their super to pay off their mortgage. It is ridiculous on how such a system is allowed to continue but considering the voter does not complain Why? should governments do anything to stop it.

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