In a public communication, ASIC stated that it has completed a review into SMSF advice following the changes to licensing for accountants.
The review, it said, was designed to identify unlicensed accountants recommending clients to set up SMSFs.
“The review found no systemic concerns around the provision of unlicensed SMSF advice but did identify significant levels of inaccurate and out of date information on websites and in promotional material of accountants reviewed,” ASIC said in its statement.
ASIC said it used a broad range of sources to identify accountants who were potentially providing unlicensed SMSF advice, including information provided by the ATO, information obtained in the course of ASIC’s current project looking at the quality of SMSF advice and information available from AFS licence applications provided to ASIC.
It also looked at reports of misconduct from members of the public, the outputs of a regulatory technology tool used to scan accountants’ websites for potential compliance issues, search results produced by a social media analytics platform used to scan statements made on blog posts, forums, social media, and publicly available advertisements or statements about SMSF services or specialisation.
“Further enquiries revealed that most of the accountants identified were not providing unlicensed SMSF advice,” ASIC stated.
ASIC said as part of its review, it targeted accountants where the services listed on their website had not been updated to reflect changes since the accountants’ exemption was repealed on 1 July 2016 or where the information on their website was incomplete.
“For example, websites did not state AFS licence details, or that an accountant was an authorised representative or had a referral arrangement in place,” the corporate regulator explained.
“ASIC has followed up with all accountants identified as part of the review who need to update their website.”
ASIC reminded accountants who may not have updated their service or AFS licence details on their websites, to do so.
“Having clear and accurate disclosure of any relevant AFS licences, as well as services provided and who provides them, is important for consumers and should avoid future misunderstandings,” the corporate regulator said.
“ASIC continues to make enquiries of five accountants whose services we have concerns about, and will take appropriate regulatory action where necessary.”
ASIC stated it will continue to work with the ATO to identify any accountants who may be providing unlicensed SMSF advice.
AISC, besides the very narrow focus of SMSF set up only, how about the buckets loads of other strategic AFSL SMSF advice that accountants still do, licensed or not, with zero AFSL compliance.
– Pension implementation advice,
– Contribution advice of many varieties,
– Pension roll back advice,
– Death Benefit nomination advice,
Not hard to find ASIC if you really looked ?
ASIC have looked at websites, glad to see they are working hard. I know of 5 accountants who are giving unlicensed advice on the basis that ASIC won’t do anything whereas if they are licensed they run the risk of getting caught up in the compliance regime. Whilst it is possible that these 5 are the one’s identified by ASIC and they are the only one’s in Australia providing unlicensed advice I find that hard to believe particularly as three of them don’t mention SMSFs on their webpages.
Whoops. So… this licensing regime change could have been delivered in three sentences:
1. The ‘accountants exemption’ was repealed on 1 July 2016;
2. Since then accountants must not PROACTIVELY push SMSFs onto clients
3. For rollovers from non-SMSFs and clients who want help deciding – refer to a planner
Is that right? The rest has been hype, smoke and mirrors??
Pity those accountants who poured sweat and blood into getting a license and
are now being terrorised for any little errors running an
advice process: fact finds, SOAs, CPD, site visits, ASIC reporting requirements, unhappy
clients.
Does this mean “hints and nudges” are now ok?
No, it’s called presenting the options in such a way that there is no room for doubt. The communications from accountants are not subtle or ambiguous at all.
Licenced accountants are doing it all the time as it saves them an SoA process.
They don’t have to worry the keystone cops (ASIC) are in charge. They are clueless on how both the planning and accounting industries work. ASIC could find a chocolate bar in a Cadbury factory if you gave them the address.