Financial Services Minister contemplates accountants’ exemption proposal
The Financial Services Minister will now consider a proposal to consider a “new, extended accountants’ exemption”, after meeting with the Institute of Public Accountants.
On Monday, the Institute of Public Accountants (IPA) met with Assistant Minister for Superannuation, Financial Services and Financial Technology, Senator Jane Hume to discuss a possible return of the accountants’ exemption.
IPA chief executive Andrew Conway and general manager Vicki Stylianou took the views of more than 1,750 practitioners who had signed their support for a return of the accountants’ exemption to Senator Hume, with Mr Conway describing the meeting as “very positive”.
“Senator Hume explained she would carefully consider the proposals and consult with her ministerial colleagues and thanked us for the approach we have made and the manner in which our advocacy has been undertaken,” Mr Conway told Accountants Daily.
“We agreed to continue the direct communication and the Minister welcomed the more than 1,750 accountants who have voiced their opinions through surveys demonstrating a ringing endorsement for the advocacy to reinstate the accountant’s rightful place to have a more holistic advice discussion with clients.
“Put simply, under the current laws, clients are being let down and accountants are hamstrung.”
The accountants’ exemption, which was repealed in 2016 as part of the Future of Financial Advice (FoFA) reforms, returned to the spotlight after Treasury floated the idea as one of seven models to improve the current regulatory environment.
The exemption had only permitted accountants who were members of the three accounting professional bodies to help with establishing and winding up an SMSF.
Professional bodies in the industry have been divided on the issue, with some noting the “extreme limitations” of the accountants’ exemption, and others arguing that its removal had created “artificial, impractical boundaries” for accountants.
The IPA’s proposal
Mr Conway said consultation with members over the last 18 months have seen a push for a new “Qualified Accountants Financial Services License” (QAFSL), that leverages the “Qualified Accountant” definition in corporate law being a member of one of the three bodies with a practicing certificate.
QAFSL holders will have their scope of advice limited to the areas currently included under the limited AFSL, but will avoid licensing fees due to their regulation by the accounting bodies.
“We think this model goes a long way to restoring balance, increasing access to competent advice and enables Qualified Accountants the ability to provide advice clients expect and trust them to provider,” said Mr Conway.
