FASEA foreshadows approach to licensed accountants with new standards
The chief executive of the Financial Adviser Standards and Ethics Authority has said their approach with the new adviser standards for accountants is an evolving part of their consultation but clarified that accountants providing limited advice are still considered to be relevant providers.
In a presentation at the SMSF Association National Conference, Financial Adviser Standards and Ethics Authority chief executive Deen Sanders said licensed accountants were an important part of the conversation with the new standards for advisers and said that ASIC may need to provide some clarification.
“In a simple sense, this act responds to what is identified as relevant providers, so that’s distinguishing the way that advisers work. The Corporations Act in its original form mentioned different types of things like limited advice but this act doesn’t distinguish - anybody giving personal financial advice on financial products is a relevant provider, doesn’t matter whether you’re under a limited or full licence,” said Mr Sanders.
“This is an immediate, current understanding – this will evolve as we get closer to implementation and ASIC will obviously be the authority responsible for identifying how that works, but importantly from our perspective, we consider this to be advice for everyone who fits into the definition of relevant provider.”
While Mr Sanders acknowledged that currently there was not a lot of information provided on what would be considered a degree equivalent, he informed delegates that FASEA would be releasing further information on this in current weeks.
“It won’t be a surprise from the legislation that the important words therein are degree equivalents, not certificate equivalents. This implies quite correctly as the law states that this is an assessment of education. We will also provide you with an idea of bridging courses and other solutions. I can give you comfort that all of those things are part of that consideration,” he said.
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates. Miranda has also directed SMSF Adviser's print publication for several years.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.