Superannuation and retirement experts Dixon Advisory welcome the response from the Government today into the Financial System Inquiry. Dixon Advisory Managing Director of Financial Advice Nerida Cole says “It’s smart to focus on building consumer confidence through enshrining the objective of the superannuation system in legislation, lifting advisor qualifications and driving more efficiency and competitiveness in this important sector”.
While acknowledging ongoing reviews can create costs to financial services businesses and ultimately consumers, Dixon Advisory supports the proposals for the Productivity Commission to assess the efficiency and competitiveness of the superannuation system so that consumers continue to benefit from innovation and to lift engagement levels.
Dixon Advisory is also supportive of the review of borrowing in superannuation in three years time. “Limited recourse SMSF borrowing is very tightly regulated by lenders. Professional financial advice providers are already required to undertake strict due diligence before advising on these type of arrangements – as they should be, because it is a risky strategy. But for a small number of people it is a valid strategy” says Cole.