Late last week, ASIC deputy chair Peter Kell said the regulator plans to undertake a series of expanded and additional projects directed at financial advice with its new revenue boost.
Included in this will be a “major shadow shop” with a follow-up shadow shopping project two years later.
From 1 July, accountants providing SMSF advice will be required to operate on the AFSL regime, and the Institute of Public Accountants’ executive general manager of advocacy and technical, Vicki Stylianou, said ASIC’s new capabilities serve as a warning to accountants who haven’t got their compliance processes in order.
“Even without the boost, we knew it was going to happen. It means that it might happen even more so, and it’ll be more intense,” Ms Stylianou told SMSF Adviser.
“If I was an accountant I’d be thinking ‘there’s a greater chance of being caught out’.”
Ms Stylianou’s warning is in line with ASIC commissioner Greg Tanzer’s recent caution to accountants who think ASIC will be light on compliance early on in the new regime.
“Frankly, if you decide after 1 July to give advice on establishing or operating an SMSF and you don’t have the requisite licence, where you’re not operating under a licence for someone who does, you’re acting illegally,” Mr Tanzer said.
“Then you’re joining the club with the investment scammers, the property spruikers, and all of the other people who choose to operate illegally.”
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Those comments Fred say a lot about the ‘professionalism’ of accountants, doesn’t it. “We’ll just ignore the rules, because we know better than the regulator, and the chances of getting caught are slim”. All the things that they often criticise financial planners for, but its a totally different story when the shoe is on the other foot.
The issue for the non-complying accountant won’t be ASIC walking in their door, the biggest threat will be the fellow accountant down the road, who is spending thousands in dollars in additional costs,is now restricted with their marketing and spending a lot of time complying with the law that ends up reporting them.
Recently I’ve a number of accountants some CA and CPA who think by paying their $800? for a limited license that’s all they have to do, and when I mention they will need more that’ eg files notes, fact finds and SOA, they laugh and who will know, as my clients want complain. As for ASIC or CA/CPA compliance they say they are unlikely to be reviewed by, as ASIC doesn’t have the resources, and as for CA review a long established accounting firm says its been over ten years since they have been audited. Also what is interesting is that some of the older accountants I’ve meet are continuing to do both the compliance and auditing work for their respective SMFS’s? Obviously, for some accounting firms they are willing to run the risk in a number of areas.