ASIC’s harsh message to laggard accountants
Accountants have been placed on notice that any advice they provide on self-managed superannuation funds (SMSFs) over the last three years outside of the Australian Financial Services Licensing (AFSL) regime will have no standing when it comes to the experience necessary to be licensed under the new regime.
Australian Securities and Investments Commission (ASIC) deputy chairman, Peter Kell, has made the position clear at the same time as telling accountants the transitionary period between the old accountant's exemption and the new licensing regime is now well and truly over.
"ASIC also notes that the transitional period enabled recognised accountants to obtain a limited licence by only having to demonstrate they had completed the appropriate training," the ASIC announcement said.
"From 1 July 2016, in addition to having to demonstrate this, applicants will also have to demonstrate that they have acquired relevant experience over the course of the previous three-year period."
However it reinforced that this would "require showing that they have been providing SMSF related financial product advice, either as an employee or an authorised representative (AR) of an AFS licensee".
Kell noted that: "A work history of providing services as an accountant who provided SMSF advice outside of the AFS licensing regime will not satisfy ASIC's experience requirements to obtain a limited AFS licence".
The ASIC deputy chairman also pointed to the fact that there had been a last-minute rush by accountants to become appropriately licensed, with ASIC receiving 38 per cent of applications in the last month of the transitional period.
He said accountants and other advisers who had not had their application for a limited AFS licence approved by ASIC needed to implement contingencies until such time as their applications had been approved by the regulator.
"ASIC received 38 per cent of applications in the last month of the transitional period and while ASIC is endeavouring to give prompt attention to the assessment of these applications (along with other licence applications that ASIC has on hand and continues to receive for financial services and consumer credit products and services in Australia), we expect that the processing of these applications could take longer than usual," he said.
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