NAB has become the first bank to agree to new self-managed superannuation fund borrowing rules, with other lenders tipped to follow.
The SMSF Professionals' Association of Australia (SPAA) has developed practice guidelines for SMSF limited recourse borrowing arrangements.
SPAA chief executive Andrea Slattery said NAB had agreed to adhere to the two separate guidelines on lending and advice, and that she was confident other lenders would soon follow suit.
Ms Slattery said SPAA had been “very conscious” of the concerns expressed about limited recourse borrowing arrangements by the Financial Services Inquiry and the fact a “tiny rogue minority” has been spruiking this borrowing facility.
She said there was an urgent need to establish guidelines in this area.
“We believe that by publishing these guidelines, and with NAB signing on and other major lenders in the pipeline, the government and regulators can have a high degree of confidence that limited recourse borrowing arrangements are being used appropriately and that the industry has best practice guidelines for lending and advice in place,” she said.
[Related: Investor group warns brokers about SMSFs]