subscribe to our newsletter
Accountants resisting insto ‘stigma’ with SMSF licensing

Accountants resisting insto ‘stigma’ with SMSF licensing

Michael Masterman
25 November 2014

In the lead up to the accountants’ exemption phase-out, accountants are resisting institutional licensing arrangements in light of several large-scale advice scandals, according to one mid-tier firm.

Greg Hayes, the Hayes Knight's chairman and joint managing director told SMSF Adviser’s sister publication AccountantsDaily that the majority of accountants do not want to align themselves with a large institutional licensee given several recent scandals involving a number of these organisations.

“From the accountants' point of view, in terms of being aligned to one of the large institutions, there's probably the greater proportion of accountants saying they don't want to do that.

“They see that institutional alignment, even if it is only on a limited authorisation, they actually see that institutional alignment carrying with it a perceived stigma with clients and even if it doesn't come with that stigma for the clients, accountants have that perception themselves.

“Accountants are not comfortable with that institutional alignment and tend to be looking more at non-institutionally aligned groups," Mr Hayes said.

Executive director of Crystal Wealth Partners John McIlroy previously told SMSF Adviser accountants are typically “independent thinkers” and would not want to be seen to be 'product pushing' for their licensee.

“Accountants generally like to be seen in their clients’ eyes as being an independent party,” Mr McIlroy said.

He added that accountants are unlikely to join bank-aligned licensees, citing potential product restrictions and cultural differences.

Accountants resisting insto ‘stigma’ with SMSF licensing
smsfadviser logo
join the discussion

Do you support the government’s proposal to change the annual SMSF audit requirement to three years for members with clean audit history?

SUBSCRIBE TO THE
SMSF ADVISER BULLETIN

Get the latest news and opinions delivered to your inbox each morning

In this month's issue:

  • Time wrap
  • The tech bull run
  • From hobby to passion
  • Golden Years
  • An untimely reminder
  • Why change is so difficult
  • Key Strategies for equalising super