To qualify for the transitional arrangements under guidance set by the Financial Adviser Standards and Ethics Authority (FASEA), accountants must be authorised under an AFSL by January next year.
The transitional arrangements allow for accountants with a related degree – which is the category most accountants will fall into – to complete bridging courses as opposed to start from scratch with compulsory tertiary-level training and education.
This upcoming deadline he said is forcing many accountants who were previously undecided about licensing to make a decision in order to take advantage of the requirements, according to director of Hayes Knight, Greg Hayes.
Initially, Hayes Knight found a lot of the accounting industry hadn’t paid a lot of attention to the new standards, he said, which is now beginning to change.
“We held a roadshow [event] across the country and spoke to over 600 accountants. Less than two per cent of the audience were fully aware of what the changes were,” he said.
“We’ve certainly been trying to increase awareness about these changes in the marketplace so that accountants can make their decision.”
Mr Hayes said the dealer groups he manages, GPS Wealth and the Merit Wealth, have “started to see a very significant upswing” in the number of professionals approaching them to become licensed.
“We’ve had a very significant upswing in the number of applications over the past two months. We expect that to continue through to the later part of this year as people become aware of the changes and hop off the fence and say yes we need to set ourselves up for the future of the SMSF space,” he said.
Mr Hayes estimates there are probably still over a thousand accountants who are undecided about licensing.
“I think what we’ll see over the coming months is a lot of those firms making a decision and deciding whether they’re in or out. If they’re going to be in then they’ll need to prepare for this new environment that we’re entering into,” he said.
“Accountants really need to be thinking about the types of services they’re going to be providing their client base and what their requirements are going to be in the future,” said Mr Hayes.
“You wouldn’t want to come back from holidays in January next year and decide you want to do it and find out it’s too late. It’ll be a new environment then because once you get past 1 January you can no longer transition.”
If they don’t make the decision till after the 1 January deadline, Mr Hayes explained that accountants will be in the same category as new entrants and will be required to complete a full financial services degree.
Thank You Jane – what is concerning is the perception by the public that we cant do this or that. Our trade is being eroded with Financial Planning groups doing more and more of the work we have traditionally done and getting it law. Personally our bodies need to fight back and stop all of the things that we are not allowed to do with out wasting our time on “education” which is of no real benefit to us.
This assumes that accountants want to be licensed financial advisers in some capacity…..most don’t.
The dealer groups and their minions, those with a vested interest in providing or advising on licensing services to accountants, have done their best to instill fear in accountants with an SMSF administration specialty about what they cannot say to clients.
Accountants should not buy into this hype and think they need to duck for cover every time a client asks a superannuation question. The licensing of accountants was never meant to stop the dissemination of factual information to SMSF trustees, just recommendations that may not be based on personal circumstances.
Suppressing of factual information is something best confined to history like the dark ages, or Hitler’s book burning Nazi’s.
Accountants don’t need to be licensed to provide SMSF administration, compliance or taxation services, and need to be mindful as always, of not making recommendations. Just let the facts speak for themselves. SMSF trustees can then seek financial advice or make their own decision.
Read ASIC’s INFO 216 information guide about what accountants CAN do and say….you may be surprised that with the appropriate disclaimer, ASIC advises that accountants WITHOUT an AFSL can still attend to SMSF establishment, wind ups or providing factual advice and a wide range of compliance services. These exemptions encompass the scope of activity that any accountant with SMSF clients might encounter.
The FASEA changes have implications for accountants who already are or want to be financial planners….most don’t.