super funds and borrowing money

  1. 6,716 Posts.
    Super funds have never legally been allowed to borrow money.

    There are some good reasons why this would be so, and also some arguable reasons why borrowing should be allowed.

    Its noteworthy that recently there have been proposals to water down this borrowing restriction. Given that Government have persistently asserted that they wish to ensure that super funds are managed in a responsible way, this has struck me as strange. Thats not to say that some moderate borrowing is irresponsible in itself, but once borrowing is allowed it opens up a whole can of worms of new opportunities for irresponsibility which in practise could never be policed.

    I suspect that a lot of pressure on the Government to allow borrowing by super funds, is coming from parties implicated in the current "crisis".
 
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