The Federal Government has responded to the recommendations of two separate reports relating to investor protection. Both the Parliamentary Joint Committee Inquiry and the Compensation Arrangements for Consumers of Financial Services Report  dealt with the governance issues that arose in the wake of Trio Capital’s collapse. Neither report identified systemic weaknesses in the regulation of the superannuation industry, however, a range of improvements to assist in the recognition and management of investor risk were recommended. The Government accepted the majority of the reports' recommendations including legislative changes to strengthen the professional indemnity insurance requirements of financial service providers, changes to improve the communication of risks to investors and measures to enhance the monitoring capabilities of financial regulators.

The most contentious issue considered in both reports was the implementation of a last resort compensation scheme for retail investors that do not have access to existing financial safeguards. The Compensation Arrangements for Consumers of Financial Services Report concluded that such a scheme would be inappropriate and potentially counterproductive as it would generate a degree of moral hazard and effectively require financially responsible licensees to underwrite the behaviour of other financial service providers. The Report found that in order to protect retail investors, priority should in fact be given to a more rigorous approach ensuring regulatory compliance by licensees. The Government accepted this conclusion but announced improved data collection on consumer losses from licensee misconduct so that such a compensation scheme may be considered again the future.