Accountants need to start thinking about obtaining an AFS licence now to ensure their practice can continue to offer self managed super funds (SMSFs) advice, according to national Accounting and Advisory firm William Buck.
Under changing FoFA regulations, from 1 July 2016 accountants will no longer be able to offer advice about SMSFs unless they hold a limited or full AFS licence.
Treasury has estimated that up to 10,000 accountants will apply for a limited licence prior to the 1 July 2016 deadline, however only 65 have taken it up.
Director of William Buck, Fausto Pastro said, “Accountants need to start having a conversation about obtaining an AFS licence. Over half a million Australians hold a SMSF and much of the advice they are currently obtaining is from their accountants.”
“Accountants are qualified by knowledge to offer SMSF advice, however in the future by law they will not be able to do so without an AFS licence. If accountants choose not to obtain the licence they will only be able to offer clients tax and compliance advice.”
Accountants are being offered two licence options – a limited licence which enables them to offer advice on strategy or a full AFS licence which includes strategy and product advice.
“In my experience clients are seeking total control of their financial position and are expecting direction across all facets of their finances. Stand-alone financial planning and accounting models offer limited advice,” he continued.
“If accountants choose not to obtain an AFS licence they won’t be able to offer their clients a holistic financial strategy that encompasses all aspects of their financial position. Their ability to offer well rounded financial advice will be compromised, and with it – their potential to best service their clients.”
In 2001 William Buck obtained an AFS licence as part of its strategy to offer clients an integrated advice model.
“William Buck’s integrated advice model covers tax advice, accounting services, financial planning and tax compliance services. Clients have welcomed this model which has given them a much stronger direction for their overall financial position,” he concluded.
“Clients trust their accountants to look after all areas of their financial well-being. To maintain that duty of care and their professional integrity, accountants must act now. It is vital that they obtain an AFS licence to ensure they can continue to offer a breadth of advice, and the best service possible to their clients.”
