Accountants to adopt licensing regime early
Over one-third of accountants who specialise in self-managed superannuation funds (SMSFs) say they will move into the limited licensing regime as soon as it begins on 1 July 2013.
With the accountants' exemption - which allows accountants to advise on the creation and closure of SMSFs - set to expire on 30 June 2016, accountants who advise on SMSFs have three years from 1 July 2013 to transition into a limited licence.
A webinar hosted by The SMSF Academy yesterday polled the 350 accountant attendees, and 36 per cent said they would become licensed 'on or about 1 July 2013'.
A further third (32 per cent) said they would transition into the new regime at some point between 1 July 2013 and 30 June 2016; 30 per cent said they were 'not sure yet'; and 2 per cent of respondents said they would leave the transition until the 30 June 2016 deadline.
According to managing director of The SMSF Academy Aaron Dunn, the SMSF advice space has become such a specialist area that it is unsurprising there will be so many "early adopters".
"There is a significant proportion of people in the industry who will look to move on this. They are seeing the opportunity to move in and reshape the way they deliver their services to their SMSF clients," Dunn said.
But while 36 per cent of respondents were willing to move into the regime immediately, there was uncertainty about the form of licensing they would ultimately choose.
According to the poll, 28 per cent of accountants will look to get their own restricted licence; 19 per cent will become an authorised representative of a financial institution; 6 per cent will refer on to financial planner; and 47 per cent are 'not sure' about the licensing route they will take.
"It's not certain whether they're going to move into the restricted licence or whether they're just going to fall under an AMP or an MLC type banner," said Dunn.
"Accountants have got to work within their business model. If it's going to cost you $10,000 to $15,000 a year, what sort of revenue are you going to generate off that to support that?" he asked.
The cost of the licence itself won't be the only cost either, said Dunn - accountants will potentially have to consider paraplanning and compliance costs as well.
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