“However, we do need to get the policy setting right and bear in mind that a valid consideration is that super is intended to generate a reliable and sustainable retirement income,” he said.

Senator Frydenberg said the government intends to consult on this recommendation with “an open mind,” and said the government’s intention is to explore “the full range” of options in this area.

“For example should personal guarantees by self-managed super funds trustees be banned?” he said.

“Should we be doing more to improve the standards of advice given to SMSF trustees considering leveraged investments?

“These are all important issues for the industry to continue to provide government with their views.

“We will consult with all parties to ensure that we are in a position to make a fully informed decision that serves the best long-term interest of consumers and delivers a financial system which is resilient as possible to economic and financial shocks.”