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ASIC sets new soft deadline for limited AFSL applications
Accountants yet to lodge applications for the limited AFSL have been warned by ASIC those lodged after 1 March 2016 run “a significant risk” of not being assessed by 30 June 2016.
ASIC reminded those accountants without an AFSL and who do not intend to become an authorised representative of an AFS licensee to start applying for a limited AFSL now if they want to keep giving advice after 30 June 2016.
“Accountants who do not lodge applications which meet ASIC’s requirements by 1 March 2016 run a significant risk that their application will not be assessed before 30 June 2016,” ASIC said in a public statement.
ASIC has, to date, only received 160 applications for the limited AFSL and has granted only 70 licences, despite the application process having been open for the past two years.
The regulator's deputy chairman, Peter Kell, said accountants should ensure they have allowed enough time to properly prepare an application and to undertake any relevant training.
“Where an application is in good order, ASIC can assess the application within four weeks, but if further details are required because the information provided is insufficient, this will take longer,” said Mr Kell.
Licensing for Accountants' chief executive, Kath Bowler, said ASIC's message has effectively cut three months from the time accountants have to complete their training.
“So there’s now only six months left to complete their training, if they want to apply for their own licence,” said Ms Bowler.
One possible reason why ASIC sent this message could relate to the initial limited application numbers, and ASIC may be expecting a last minute rush.
However, Ms Bowler said the main reason for ASIC informing accountants of their deadline is to get them moving.
“Accountants have been extremely slow, unfortunately, in this licensing area, and I guess ASIC is doing what it can to get them moving and make them realise that time is running out,” she said.
“Certainly our experience is that nearly half haven’t even made a decision about how they’re going to tackle licensing.”
Speaking to SMSF Adviser’s sister publication Accountants Daily, IPA executive general manager, advocacy and technical, Vicki Stylianou said the Institute of Public Accountants is pleased ASIC has put out a warning to accountants.
Ms Stylianou said while there is no ruling around this March 1 date, the initiative gives accountants a good idea of the length of time it will take to process the last-minute applications expected by the regulator.
“ASIC has always said that if all your documents are in place then it takes them like 28 days to process, so if they get this flood at the last minute, they're not going to process them within the last 28 days,” she said.
“[ASIC] have been given extra funding through the budget process, but that doesn't mean that people are necessarily going to get their application done within the 28 days if there were suddenly 500 of them.”
SMSFs are permitted by law. People start them because they want to be self-directed. Accountants have provided valuable assistance to trustees for decades on how SMSFs work and what the rules are. That is not a recommendation to do anything other than help the SMSF sector to be "well run". I have never recommended anyone set up an smsf. When they ask, i tell them the advantages and disadvantages. How is that not a service to humanity? Its not like self directed client a want to see an FP anyway, even when you tell them too. That is the FP industry's peoblem to address on the way you charge and the image your industry has.
I will go to my grave helping SMSFs understand the rules, and that it is NOT financial advice.
So Jimmy, I am not being holier than thou. Laws get changed, amended, repealed all the time, but only when men & women of good conscience stand up and tell the community & Govt that it may be wrong.
That is why I contribute here.0- Don't be surprised Leo. I'd be guessing George treads all over the line between what is 'factual' and what is 'personal advice'. The issue will be, as George points out, that ASIC will not have the resources to actively monitor 10,000 accountants that are providing advice that they are not licensed to give.
George has a holier than thou opinion of himself and his peers in the accounting industry. He will only be bound by the laws that suit him. George should publish his full name so ASIC know where to start their shadow shopping...if he's got nothing to be worried about, seeing he only provides 'factual information'.0 - One minute we are told Accountants only provide factual advice and set up SMSFs when they are told to by their clients. Now I am told that Accountants are largely responsible for all the SMSFs in existence. I am confused.Financial planners have very little penetration in the SMSF sector. Accountants are largely responsible for the existence of the more than the 550,000 SMSFs, and their years of guidance and advice is why the Cooper review of Super found that the SMSF sector is well run and that SMSF members have a high degree of knowledge and involvement in their superannuation which should be the envy of the other sectors.0
- I could not agree more George VC. From discussions within the industry, many will make an arrangement with their financial planning people (usually an independent group) without necessarily becoming an authorised rep and will limit themselves to not giving advice, merely to process. For example, I have never advised a client to set an SMSF, but discussed the pro's and con's with them and let them decide whether they want one. The only area that I will not be able to help them with will be documentation for pensions, which can easily be handled by the financial planners. They will also give advice on investments that I am unable and not interested in giving. The less involvement in licensing, the better.0
- Its quite obvious that most Accountants have decided not to apply for a limited licence, or join a dealer group.
Licensing accountants is an attempt to deny self directed SMSF trustees a source of valuable guidance & compliance advice by the vested interests in the FP industry, dealer groups and industry funds.
Financial planners have very little penetration in the SMSF sector. Accountants are largely responsible for the existence of the more than the 550,000 SMSFs, and their years of guidance and advice is why the Cooper review of Super found that the SMSF sector is well run and that SMSF members have a high degree of knowledge and involvement in their superannuation which should be the envy of the other sectors. Accountants wont become licensed under this faulty regime or be gagged and will continue to provide factual advice to SMSF trustees. The Govt will need to go back to the drawing board. ASIC does not have the resources to take on the whole accounting profession.0
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