Minister for Superannuation and Corporate Law Nick Sherry has begun a review of self managed superannuation funds (SMSFs).
The review follows Government concerns about the way SMSFs are promoted to the public.
"The Government is concerned where individuals are subject to aggressive marketing strategies and are persuaded to establish a SMSF without being aware of their role and responsibilities, and without appreciating the costs involved," Sherry said.
The Association of Superannuation Funds of Australia (ASFA) will also review SMSFs, as part of a raft of advocacy measures for 2008.
In particular ASFA will assess the use of instalments warrants in SMSFs.
"Superannuation is a long-term investment. People need to understand the consequences of using their self managed super funds to borrow so that they can invest in other assets," ASFA chief executive Pauline Vamos said.
Under current rules enacted by the previous Howard Government, SMSF trustees can gear though warrants to buy listed securities as well as lifestyle assets such as artwork and vintage cars.
