23 May 07 Investment in Instalment Warrants by super funds - consultation outcomeIn a press release issued on 22 May 2007, the Minister for Revenue and Assistant Treasurer, Peter Dutton, announced that the Government has decided to legislate to allow superannuation funds to invest in instalment warrants of a limited recourse nature over any asset a fund would be permitted to invest in directly.
The Government announced on 3 November 2006 that it would consult with industry to determine the precise scope of the amendments to the Superannuation Industry (Supervision) Act 1993. The Government sought comment on the underlying assets over which instalment warrants might be written, the risk to which a superannuation fund was exposed, the suitability of instalment warrants as a retirement savings investment product, and the gearing levels, contractual terms and liquidity of instalment warrants. The Minister's announcement is the outcome of the consultation process.
The Minister said that the Government intends to introduce legislation shortly.
For a copy of the Minister's press release, No 2007/066, 22 May 2007, go here