Merit Wealth accountants services director David Moss told SMSF Adviser ASIC will analyse the tax returns of the funds in order to establish who is providing advice on pensions and whether they are authorised to provide that advice.
Mr Moss explained that if a client has a transition to retirement pension, for example, and they have it for tax purposes, their accountant is likely to suggest the client wind up the pension following the recent super reforms.
He said ASIC will know that the fund lodged a tax return with a deduction for exempt current pension income last year, with the tax return stating that it was in pension mode.
“When it’s no longer showing that it’s in pension mode in 2017, they will contact the client and ask why it’s no longer in pension mode. They will ask, ‘Did you do that yourself or did you have an adviser that was really helpful?’” Mr Moss said.
If the client tells ASIC it was their accountant, the corporate regulator will examine if that accountant is licensed.
“If ASIC then sees the accountant isn’t licensed, then ASIC has got them,” Mr Moss said.
“It’s not very hard for them to find this stuff out. A lot of accountants are going to potentially get themselves in strife.”
I notice that there is no mention or concern as to whether or not the advice was actually correct or not. This is “police state” stuff. Small minded brown-shirts rushing around trying to entrap good people. This legislation stinks of cronyism and self interest. After all accountants are nearly all qualified already. Appearances would suggest its not important as to whether you do the work well or not, rather whether you have paid your money and got licenced in spite of already having been doing this work for years and years.
All this over-the-top legislation and red tape. Is it any wonder that Australia’s international competitiveness has gone down the toilet. I wonder whether the “back office” accountants in the phillipines are licenced.. lol.
Did anyone ever ask the clients whether or not they want to pay more for advice just so their accountant can afford to get more qualifications?
“..ASIC will analyse the tax returns of the funds..”? If that is the case then the ATO are in significant breach of their own privacy requirements and charter. So perhaps David Moss doesn’t really know what he is talking about. ASIC have said themselves that they are going to look at accountants. That’s okay, nothing new. As long as they also check the financial planers tax advice to ensure that it is also appropriate, as the current changes are very tax based changes. Nothing new with this article, just a self serving article scaring people into thinking only planners can give advice. Oh ho hum.
Yes, I think we have be hearing a lot more of unlicensed accountants and ASIC in 2017. ASIC appears to have the determination and the resources to search for accountants provide advice whilst unlicensed. Unlicensed accountants will find it hard to not provide such advice to clients who they have looked after for many years. Interesting times ahead.
Ah David, if only your thoughts were true.
I don’t believe there is 1 single case of an accountant being busted by ASIC for providing strategic AFSL SMSF advice without even the smallest attempt to be licensed, do fact finds, write SoAs, best interest duty, etc.
Out of 600,000 SMSF’s with hundreds of thousands of accountants going way, way, way (wilfully or negligently) beyond the old accountants exemption and providing bucket loads of AFSL SMSF strategic advice.
ASIC are yet to bust 1 accountant for not providing the correct AFSL compliance.
Ah David, if only your thoughts were true.
I don’t believe there is 1 single case of an accountant being busted by ASIC for providing strategic AFSL SMSF advice without even the smallest attempt to be licensed, do fact finds, write SoAs, best interest duty, etc.
Out of 600,000 SMSF’s with hundreds of thousands of accountants going way, way, way (wilfully or negligently) beyond the old accountants exemption and providing bucket loads of AFSL SMSF strategic advice.
ASIC are yet to bust 1 accountant for not providing the correct AFSL compliance.