As it stands, only 65 accountants have so far been approved for a limited licence. As heavily reported in SMSF Adviser, the general take-up of the new SMSF licensing regime for accountants has been slower than anticipated.
In fact, earlier this year, ASIC deputy chair Peter Kell urged all accountants to “get their skates on” to ensure they can legally provide SMSF advice from 1 July 2016.
However, Vicky Stylianou, the IPA’s executive general manager, advocacy and technical, questioned how well placed ASIC would be to cope with a flood of accountants seeking a licence.
“[Previously,] there has been a three-month extension because the regulator hasn’t been able to cope, and ASIC is under review, so it will be interesting to see how that goes,” Ms Stylianou said.
“We talk to ASIC all the time and I think they’re expecting a flood, and they’re probably getting ready for it. It’s something I think we probably won’t know until the last minute,” she said.
Ms Stylianou also expressed concerns about accountants who may simply run out of time to sort out their licensing arrangements and be forced to rely on referral relationships to keep their SMSF clients on the books.
“If that was going to be their choice that’s great, but I think my main concern is there’s still a lot undecided and there’s still a lot that don’t realise how much is involved in entering the licensing environment,” she said.
George, theres no need to be worried. The accountants that I work with know the value of advice we provide their clients. They also know they cant be all things to all people, just as any good planner does. They also know the types of quedtions they get from clients amd know how easy it is to cross the line from the sort of factual information you say you provide to personal advice. Asic shadow shoppers will have a field day with accountants giving advice they are not licensed to give.
After going the tit for tat and getting planners registered with the TPB, perhaps its accountants that should be worried about their place. I see more planners buying accounting practices than vice versa
The big fight coming down the line on this issue is “what is just providing factual info about SMSFs versus recommending a client set one up?”. I suspect huge portions of the accounting profession who have done “nothing” on licensing are saying they don’t recommend SMSF set ups and won’t July next year they just provide factual info and leave it to the client to decide to set one up or not. ASIC on other hand particularly if they see quite a few set ups coming out of one accounting practice will try to argue really the accountant is recommending. I don’t think ASIC and others actually grasp how attractive a SMSF is to a fairly large portion of the population. Controlling your second largest asset is a very powerful incentive to going SMSF. You don’t in fact need to even implicitly recommend it the unvarnished facts are compelling enough. This will be where the fight is and why the take up of licenses is so low
[quote name=”Jimmy Neutron”]You poor babies. Listen to you moan.[/quote]
You should be worried Jimmy. If Accountants are forced into this licensing regime, & we then decide to have a serious go at it, we will wipe the floor with you FPs.
We wont pretend to be a investment /insurance/super/tax/estate planning/ genius like FPs do overnight.
“Financial Planner” is a Govt made up name. There is no such person can possibly master all of those disciplines. Accountants will break planning down into its constituent elements and refer to lawyers, stock brokers, insurance specialists as it always should have been.
We wont swallow clients whole with exepensive “looking after” fees like FPs. We will charge a fair fee only for what we do, which is what clients want. We wont be pushed into being salesmen like you are.
You thought you could squeeze Accountants out? You and your dealer groups will rue the day you ever lobbied to have us in!
You poor babies. Listen to you moan.
Just because accountants haven’t flooded ASIC with applications for their own AFSL’s doesn’t mean that accountants aren’t becoming licensed under the incoming regulations. They’re just joining an existing AFSL under a full or limited licence option.
And Accountant Phil, superannuation may be a tax structure in concept but as soon as you recommend a particular vehicle in which to place those retirement savings is where it becomes a financial product. It doesn’t matter if you put it Aust Super, BT or an SMSF, they’re all financial products.
You’ve had 3 years notice and exemption up to this point, its not like there’s been no notice….
Hear hear GeorgeVC. Licensing is just another cost, and in my opinion, an unnecessary cost, in providing great service to clients who have their own SMSF or are considering establishing or winding one up. Just. Another. Cost. The whole concept of licensing stems from the view that superannuation is a financial product. It is not. It is a structure to allow people to save for their environment in a concessionally taxed environment. I expect my professional association to defend this to the hilt. So far they have not. They still have time to do so. At the least, there should be a moratorium on licensing, then a removal. We weill continue to give factual advice – without a license.
Cannot agree with George enough, well spoken.
The results about this licensing issue from effected members speak what we truly believe about it.
Rather than just continually rubber stamping all Govt initiatives, it is about time the Institute & CPA bodies start standing up for members rights and properly supporting member’s views.
The Accounting Profession has voted with its feet. There wont be any last minute rush or “getting on of skates”, sorry.
Its nice to hear at least one of the accounting bodies finally piping up in defence of its members. Its time the others do & go to Govt on our behalf and tell them this licensing of accountants is just not going to work.
Our SMSF clients can “stay on the books” despite your scare tactics. Accountants will continue to provide accounting, taxation, audit & compliance advice to their SMSF clients post 1 July 2016. Factual advice on how to run and best utilise an SMSF is what accountants give, and despite all the scare mongering. That is not financial advice.
Accountants should reject licensing in any form, and the stats now show we have done so.
It is the Institute of CA’s & CPAs that better “get their skates on” and start lobbying for a moratorium on accountant licensing, and truly start to represent your members!