Superannuation laws before parliament could encourage funds to chase asset bubbles instead of being a stabilising influence on financial markets.
McKell Institute spokesman James Pawluk warns the legislative changes could also make it harder to deal with unpredictable black swan events as the bill is drafted for perfectly behaved markets. The proposed performance benchmarks will make it less viable for funds to adopt a strategy of steering clear of an asset bubble as it s forming, unless they are convinced it will burst or dissipate before the current performance period ends, Mr Pawluk told a parliamentary hearing on Thursday.
Superannuation laws before parliament could encourage funds to chase asset bubbles instead of being a stabilising influence on financial markets (stock image)