Speaking to SMSF Adviser, Licensing for Accountants chief executive Kath Bowler said there are still a lot of policy issues with licensing that need to be resolved by both ASIC and the government.
One example of this she said is that an accountant with a limited licence is able to look at a client’s existing fund if they’re setting up an SMSF and recommend that they should keep their APRA-regulated fund or whether they should roll it into an SMSF.
“However, if a client already has an SMSF as well as an existing fund, the rules don’t allow the accountant to do that same task,” she explained.
“So you’re only allowed to look at the existing fund, if you’re in the process of setting up an SMSF and not in the process of reviewing an SMSF.”
Another big issue, Ms Bowler explained, is ASIC’s interpretation of tax and superannuation compliance which has actually put licensed accountants at a disadvantage.
“They can no longer offer their clients a choice in the level of services. They’ve gone to the effort of getting licensed by someone else or through their own limited licence, but their ability to provide compliance work has been taken away because the ASIC interpretation suggests that if you’re giving advice on super it has to be done in a licensed capacity,” she said.
“Sometimes clients want a choice though, they may want a low level compliance service or they want advice, and different clients need different levels of service.”
Ms Bowler said licensed accountants consequently feel like they’re at a disadvantage because they’ve added the advisory element to their business in order to expand their services but they don’t want to force all of their clients into receiving advice services.
“They wanted to add to their services not swap them,” she said.
Totally agree Jim.
We are entering a sad time for the super industry and in particular SMSF’s.
Just watch what these large organisations with high cost structures start charging the honest mum and dad super funds and I bet you it won’t be cheap mainly due to all the ridiculous over compliance now dumped on super funds and accountants.
The small operators such as have grown the Australian economy are being squeezed out of the industry and you will be flat out finding good affordable advice in future leaving clients in no where land as far as understanding their superannuation. Just one big joke.
This is the worst bureacratic bungle i have seen in the industry in 43 years and it does absolutely nothing for the clients who are now so confused about the word superannuation altigether they are looking elsewhere and are ceftainly not going to waste their money on advisers who are notorious for their outrageous fees. What a complete joke.
Typical licencing policy – how legally rip clients off – and off zero service……what a complete joke
ASIC???
Accounting bodies???
Come on – it’s 15 months since this law change. It’s time you give us some clear, workable rules to abide by. Not just pages and pages of contorted, caveatted drivel – where the only guidance is scaremongering by companies pushing their ‘solutions’.