Phase three of the Cooper review closed at the end of last week as industry submissions begin to filter through.
One the main focuses of the third phase of the review was self-managed superannuation funds (SMSF) and how they can best be integrated into Australia's superannuation system.
At the Self-Managed Super Fund Professionals' Association of Australia (SPAA) conference held recently, review chair Jeremy Cooper said SMSFs could be the future for retirement saving in Australia.
"SMSF members, on the whole, appear to be doing well in taking on a higher level of responsibility for their retirement savings and achieving satisfactory net investment returns," Cooper told the conference.
"The aim of the review is to see whether there are improvements that can be made which benefit members while not disproportionately increasing regulatory burdens or cost. In doing this, the review carries the burden of looking out for the unintended consequences of intervention."
In its submission, the Australian Institute of Superannuation Trustees (AIST) recommended that there be stronger regulation of advisers to SMSFs, whether they were accountants, stockbrokers, financial planners or other professionals.
The AIST also said the Australian Prudential Regulation Authority (APRA) should be responsible for SMSF regulation.
"APRA, as the regulator, establish better facilities to validate complying status, so that other funds can roll over funds to SMSFs with confidence," it said.
The Association of Superannuation Funds of Australia (ASFA) also focused on the regulation of SMSFs in its submission.
ASFA called for the licensing exemption for accountants to be abolished.
"This is a confusing situation and has the potential to produce sub-optimal results for individuals considering establishing an SMSF," ASFA chief executive Pauline Vamos said.
"Accountants or any other person providing a recommendation in relation to SMSFs should have appropriate training and be holders of an Australian financial services licence."
The peak superannuation body also argued the current minimum level of expertise required in order to become an SMSF auditor was too low.
However, financial planning group Dixon Advisory urged the Cooper review to safeguard the independent SMSF sector from over-regulation.
"Independent SMSFs are essential for keeping competition honest and progressive for all consumers of superannuation," Dixon Advisory managing director Alan Dixon said.
"The big retail and industry super funds are active lobbyists for increased SMSF regulation. They don't like the competition. Advice from these funds and their industry groups on how to regulate independent SMSFs should be regarded like advice from Coles and Woolworths on how to regulate the independent grocery sector."
In its submission, Dixon Advisory recommended that barriers for entry to SMSFs for consumers should not be increased.
"Existing rules are sufficient to make would-be SMSF trustees aware of their responsibilities and to dissuade them from setting up SMSFs without due consideration," it said.
Despite that, the financial planning group said mandated registration for auditors of SMSFs should be considered.
"Auditors of SMSFs should have a significant degree of specialisation," it said.
Cooper told the SPAA conference the main area he believed needed improvement was asset allocation.
"Data suggest that SMSF investors might not be getting the best advice or information about asset allocation. This is all part of the process of finding out more about the SMSF sector for the overall benefit of its members," he said.
Preliminary views on SMSFs will be released in April or May.
