Accountants – From 2013 will have limited power to advise on SMSF set-up and basic product-class advice

SMSF Self Managed Super

Accountants will have limited power to advise on SMSF

Generally, financial planning associations and accountant bodies have welcomed the replacing of the current licensing exemption for accountants with a new form of financial-advice licence on SMSF (self-managed super fund) and basic product advice, as just announced.

Bill Shorten, the Minister for Financial Services and Superannuation believes the new and limited Australian Financial Services Licence (AFSL) will significantly increase the availability of financial advice and create an opportunity for thousands of small-practice accountants and financial advisers.

Those eligible for the new licence will be professional accountants who hold a public-practice certificate, which will replace the requirement for accountants to demonstrate the relevant experience to apply for the new licence. However, they will still need to demonstrate they meet the training requirements to hold a licence and provide financial advice.

In addition to being able to advise on SMSF and superannuation generally, licence holders will be able to give “class of product advice” on basic deposit products, general and life insurance, securities, and simple managed-investment schemes.

Importantly, the new licence does not allow specific product recommendations but is designed to enable accountants and any financial advisers who may hold this designation to provide more strategic and low-cost forms of financial advice.

As recognition of accountants’ existing professional qualifications, a transitional period from July 1, 2013 to July 1, 2016 has been made available to those wishing to comply with the AFSL regime. In the second half of the year there will be draft consultations.

See more at Professional Planner…


About SuperBenefitnews

Self-Managed Superannuation Service Providers in Australia. SuperBenefit provides a wholistic SMSF assistance, education and administration service continuum - 1. “assistance” is help of whatsoever nature where our overall SMSF experience and knowledge enables us to provide assistance/help without any legal (or “license”) limitations. 2. “education” involves providing knowledge through teaching, coaching and mentoring about all matters SMSF, including (but not limited to) investment issues such as equities and property, 3. “administration” encompasses all admin aspects of legally required SMSF trustee and member record keeping including (but not limited to) audit and ATO matters. In keeping with our key point that SuperBenefit does not provide Financial Advice, where issues arise from 1, 2, and/or 3 above Indicate a need for a legally authorized provider (such as a Financial Adviser) and the client does not have their own service provider, the client can utilize SuperBenefit’s ‘Connect Assist’ … SuperBenefit, in itself, does not provide Financial Advice, but it does provide the wherewithal for great SMSF service. WE do not provide Financial Advice or any other service that requires a legally authorized provider. However, where such advice or service is required we have our ‘Connect Assist’, a SuperBenefit resource we use to connect clients to a Licensed Advisor or other legally authorised service provider. Call us 0407 361 596, no obligation FREE Connection call to see how we can help you!
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