The widely anticipated removal of the accountants’ exemption under the Future of Financial Advice (FoFA) reforms has accounting bodies scrambling to pre-empt the legislation.
The Institute of Public Accountants (IPA) has announced a partnership with AXA and MLC to provide its members with a financial services package in order to avoid breaching licensing conditions.
The introduction of the IPA’s new offering is partly in response to the removal of the accountants’ exemption under the FoFA reforms, the IPA said in a statement.
The service will offer IPA members the choice of either providing financial advice in-house by becoming an authorised representative of a license holder and/or referring their clients to a referral network. In the first instance this allows accountants to continue offering advice on self-managed superannuation funds, assets including direct property and financial planning.
Members will be able to choose from five licensing solutions developed around basic financial advice, strategic advice and a more comprehensive option covering investments and insurance.
Qualified members will have the ability to: advise clients in relation to the establishment and closure of SMSFs; advise on assets, including direct property, held within SMSFs; provide associated services and advice to clients in areas such as financial planning, life risk and credit advice for individuals and businesses; and give general advice in relation to superannuation.
“The new service will enable members to provide a full range of financial planning and financial advice services to their clients,” says the Institute’s chief executive officer, Andrew Conway.
Sam Aylett, AXA Financial Advice Network’s national manager, business and marketing programmes said it was inevitable that accountants will experience challenges with the removal of exemptions proposed under FoFA. “We are thrilled to be working with an association of the calibre of the IPA to provide practical solutions for its members,” he said.
Nick Hilton, National Manager MLC Business Consulting said SMSFs remained an excellent solution for clients that are highly engaged with their superannuation.
“It’s important that accountants are still able to provide appropriate SMSF advice under FoFA,” he said.
