Derivatives and self-managed superannuation funds (SMSF) may be the next cabs off the rank for the Parliamentary Joint Committee (PJC) on Corporations and Financial Services.
“Certainly, I think the derivatives market is something we’d look at,” PJC chairman Bernie Ripoll told InvestorDaily.
“We’d look at a full inquiry at some point in the future. We’d look at: what is this market that’s growing at very fast pace, how solid is the regulation covering this market?
“The potential for danger in derivatives is looming. My advice is: be very careful.”
Ripoll said the PJC would not make a decision until February or March after the committee finished its three live inquiries on the Future of Financial Advice (FOFA) reforms, MySuper and the collapse of Trio Capital.
The deadline for submissions on FOFA is Thursday and the PJC is slated to report its recommendation to Parliament on 29 February 2012. The MySuper deadline is 20 January 2012 and the reporting date is 21 March.
The Trio reporting date has been extended to 9 May 2012 from 24 November 2011.
“We’d take another look at SMSFs at some stage because it’s a fast-growing part of the industry,” Ripoll said.
“In general, it’s a part of the industry that works very well, but it does have the potential for people to get into products they don’t understand.
“We saw a lot of that in Trio.”
He said the PJC might also look at small and familiy-sized businesses to see how they operated in relation to Australia’s corporations’ law.
