National financial services licence provider, Accountable Financial Solutions, says accountants expecting the new look Coalition Government to reverse its decision to remove the accountants SMSF advice exemption should think again.

Accountants have until 30 June 2016 to either become licensed or opt out of providing financial advice to SMSF clients.

Accountable Managing Director and founder Tony Zulli said the Australian Securities and Investment Commission (ASIC) has noted a poor uptake of accountants and accountancy firms applying for an Australian Financial Services Licence (AFSL) facility.

“There’s a sense that many in the accountancy sector are hoping the Turnbull government with its revamped ministry may do an about turn on the SMSF advice exemption,” Mr Zulli said.

“But they need to think again as anyone providing unlicensed advice after June 30 next year risks the wrath of ASIC.”

Mr Zulli said Accountable spends most of its time educating accountants in public practice on the practical decisions they need to make, including how best to structure and position their new financial advisory practice.

“It’s not an easy decision for most accountants and complicated further by the sheer amount of information out there”, said Mr Zulli. “We break it down into simple, easy to understand steps in the decision making process.

“We particularly look at the current structure of the practice, the number of partners or principals of the firm, who manages the SMSFs within the firm, and the engagement of the staff. We have created a unique structure for multi-partner firms which effectively gives the partners ‘a licence to talk’ and an internal referral process to another licensed staff member to prepare and implement the documented advice to clients.”

Mr Zulli said he feels for sole principal firms with a smaller number of SMSF clients as they will find it hard to balance their need to be compliant from 1 July next year and the cost of licensing.

“It’s a fine balance. However, there are ways in which a sole principal firm can ensure that the transition to financial advice can eventually pay off. One way is to capture all their superannuation clients, not just SMSF clients.”

Accountable has been operating an AFSL for accountants and accounting practices for over four years.

Source: Accountable

Join the discussion