Risks associated with LRBAs can be managed by the enforcement of existing legislation rather than banning them entirely for all investors, a specialist lender has claimed.

The banning of limited recourse borrowing arrangements will not be needed if certain other measures are implemented to lessen the risks involved with this type of gearing, according to the SMSF Association.

The use of LRBAs was not creating systemic risk in the superannuation or financial system according to research conducted by the ATO and Council of Financial Regulators.