ASIC informed SMSF Adviser that as of 13 April 2015, it has received only 121 applications.
This accounts for only one per cent of the 10,000 accountants that could potentially apply for the licence, as estimated by ASIC.
ASIC also reported that of the 121 applications received, it has only approved 50.
“The number of applications which have been withdrawn by the applicant or which were administratively returned to the applicant because they were incomplete, defective, inadequate or incapable of assessment by ASIC is 59,” the corporate regulator said in a statement.
This follows comments by ASIC deputy chair Peter Kell at the SMSF Association conference that with less than 18 months to go until the accountant’s exemption is phased out, accountants “need to get their skates on”.
Mr Kell also urged accountants to ensure their documentation clearly sets out they have adequate professional indemnity insurance, that they understand how to handle their clients’ finances and that they have the relevant qualifications.
“The longer you leave it and especially with those sorts of things, the more challenging it’s going to be, so be early and accurate,” he said.
Wow, a lot of feeling in those comments and I do have some empathy for accountants. However, the goal posts have already moved and to just expect that lobbying power or recalcitrance by accountants will see the regulators bow to your demands is not understanding how much “advice” is under scrutiny. The ship has left the dock, you can catch it at the some ports until 2016 but after that it may not dock again.
Glad to see that there are still some Accountants out there who haven’t been hoodwinked by the “helpful” financial planning houses that are now making money out of a problem that they are directly responsible for creating. The beneficiaries of this fiasco are only the government and the financial planning industry. Clients certainly won’t benefit .
Couldn’t agree more with all the comments below. Every day the newspapers report on the failings of the financial planning industry but ASIC want them to licence us! Perhaps ASIC doesn’t understand that obtaining a licence (didn’t seem to help the financial planners much) will achieve absolutely nothing and not improve our advice to clients. Just more red tape and cost for us. I think the ICA and CPA should make some further representations to someone sensible in government (oxymoron?)to rectify this ridiculous situation. Call me cynical but I think the larger players in the super industry with vested interests in account balances are sick of people setting up SMSFs.
Just more proof that the ” major accounting body” representatives who were supposed to represent and protect our interests either really stuffed up, or allowed their other vested interests to taint the quality of their representation.
I have had a number of serious arguments with some these people, who frankly have screwed us all, but who all maintained that this was the best result they could achieve. Strangely enough, the ones I have spoken to have all had financial planning qualifications, (which is probably why they were selected to represent us in the first place). But of course they were not going to be inconvenienced by the necessity to obtain limited licencing and therefore did not give a dam that the rest of us are buggered. In fact some of them are offering to (for a fee) assist us to obtain our licence…What a joke!
I agree with everything that has been said to date. One reason we are putting it off is because we are in NO HURRY to deal with ASIC and their crap for licensing. We will deal with it when we have to. ASIC, if you are expecting 10,000 license applications, expect 9,800 of them next year because it aint going to happen sooner and I trust you will be appropriately geared up for it. You have been warned many times now (twice by me in the last six months and no amount of stirring the pot or trying to scare will change anything. We do not want to deal with you and your crap and we are in no hurry.
Well said George. I think the numbers clearly show that not only the application process, but the whole concept is flawed.
The Tax Practitioners Board granted Registered Tax Agent status to any Financial Planner who applied, without requiring them to undergo any additional training. Don’t see why ASIC can’t do the same.
George’s suggestion to automatically grant limited licences makes sense – University degree, CA/CPA qualified, Reg’d Tax Agent certified, xx years experience in tax and SMSF advisory, possibly already RG146 trained…..yet ASIC still want more.
Beats me!!
ASIC want a full AFSL application process and full dUe diligence, SOA etc i.e. the same financial planning rules that full licences follow, but for a limited licence.
ASIC is either too arrogant, too stubborn or just too stupid to simplify its application process.
Just grant all recognised accountants the limited licence then sort it out later If they move to full financial planning.
Even without DFP subjects, accountants are well above the FP industry standard of qualifications and education.
This is just another example of bureaucracy driving Australia down the drain.
If ASIC are expecting another 9,950 applications, i think the writing is on the wall dont you think?
Mr Kell needs to be telling his evil overlords in treasury that this aint gonna work!
Time has come for legislative re-reform. Licensing accountants was always just a very stupid idea.