Accountants in the dark over licensing process

accountants/self-managed-superannuation-funds/SMSF/accountants/australian-financial-services/investments-commission/australian-securities-and-investments-commission/SPAA/chairman/

12 February 2015
| By Malavika |
image
image
expand image

Accountants remain confused about the process involved in the uptake of the limited licensing regime but they need to proceed quickly if they want to advise on self-managed superannuation funds (SMSF), the SMSF Association (formerly SPAA) warned.

The association's CEO, Andrea Slattery, said accountants remain nonplussed about the transition because they are unfamiliar with the Australian financial services licensing (AFSL) world.

But she urged accountants to start the process right now, and said there is no time left for accountants to not at least start considering it.

"According to the Australian Securities and Investments Commission's statistics a month ago, there were less than 60 people that had limited licensing arrangements organised," Slattery said.

She said there was an initial expectation that 10,000 accountants would sign up for this option over the three-year period but this expectation is far from being met.

"The concern of the SMSF Association is that there will be a lack of accountants to give specialist advice if this situation does not change.

"If people don't start on their journey very soon they're going to have a problem with who can actually provide advice on various aspects in 2016 under a limited licensing regime," Slattery said.

The association's chairman Peter Crump said the confusion arose because accounting groups wanted to be led to the solution, whereas what has materialised is a self-led process.

He also stressed accountants have to get on with investigating the options, and deciding whether they want to commit to strategic advice or just provide financial statement, tax and audit services.

ASIC data from July 2014 showed the regulator had received 62 applications for a limited AFSL with only 27 applications approved.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 1 week ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

3 weeks 1 day ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

2 weeks ago

One licensee has lost 27 advisers in the past week, now sitting at zero, according to the latest Wealth Data figures....

3 weeks 1 day ago

TOP PERFORMING FUNDS