With reports that ASIC is already shadow shopping, those accountants hoping ASIC will take a light enforcement approach to the new SMSF licensing regime after 30 June this year are putting themselves in the regulator’s firing line, one accounting body has warned.
While ASIC can traditionally be “a little lighter” in terms of enforcement at the beginning of a new regime, accountants should not be relying on any form of grace period once the accountants’ exemption expires on 30 June, the Institute of Public Accountants' executive general manager – advocacy and technical, Vicki Stylianou, told SMSF Adviser.
She noted there has been an extensive transitional period for accountants to get their licensing arrangements sorted, with The Future of Financial Advice (FoFA) reforms effectively being in the works for six years.
“If you get any kind of leniency then you’re lucky, but definitely do not rely on it and be as prepared as you must be come 1 July,” Ms Stylianou said.
“It is really going to be crunch time come 1 July,” she said.
Ms Stylianou echoed ASIC’s sentiments, and believes there will be a substantial portion of the accounting community who will exit SMSF advice.
“There’s a lot who have decided they don’t do enough of them, so it’s not worth beefing up or staying in, so they’re just going to exit,” she said.
Late last week, ASIC reported an increase in the number of applications received for a limited licence, but commissioner Greg Tanzer believes many accountants have “changed their business model” for the provision of SMSF advice after 30 June.
“We think that probably a lot of people have decided either not to get a limited licence and actually to operate under someone else’s licence, or that they have changed their business model so that they won’t be advising on establishing or operating an SMSF, but instead they’ll be referring that business to somebody who is,” Mr Tanzer said.
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
25 Aug 2016Labor’s super stance ‘concerning’ for SMSFsBy Katarina Taurian
25 Aug 2016State of super savings dire without voluntary boostsBy Katarina Taurian
25 Aug 2016Central bank policy poses risk to SMSFs, warns economistBy Staff Reporter
25 Aug 2016‘Shift in liability’ flagged in SMSF documentationBy Katarina Taurian
25 Aug 2016SMSF software provider continues fintech movesBy Staff Reporter
24 Aug 2016Firm hit following ‘free SMSF set-up’ claimsBy Staff Reporter
- view all
State of super savings dire without voluntary boosts
New research has revealed that a goal of 50 per cent of retirees enjoying a comfortable standard of living by 2050 is unachievable. ...read more
Central bank policy poses risk to SMSFs, warns economist
SMSF practitioners should advise their clients to act with caution, with the ongoing monetary stimulus from the central banks resulting in i...read more
‘Shift in liability’ flagged in SMSF documentation
A recent incident where an accountant was sued after an issue with their estate planning advice points to an increasing threat of liability ...read more
- view all