Accountants' licence draft legislation released
Financial Services Minister Bill Shorten has released draft regulations outlining a limited licence for accountants, replacing the accountants' exemption replacement regulations.
The exemption allowed accountants to advise on self-managed superannuation funds (SMSFs) without an Australian Financial Services Licence (AFSL), and is now scheduled to be repealed on 1 July 2016.
The limited licence was first outlined on 23 June, and the current draft regulations are open for consultation until 21 December.
It will allow accountants, from 1 July 2013, to access a new form of limited licence which will enable them to discuss with clients a range of financial products includes SMSFs, superannuation, securities, simple managed investment schemes, general insurance, life risk insurance and basic deposit products.
However holders of the limited licence will not be able to recommend specific products.
Accountants with a public practice certificate from one of the professional accounting bodies will be deemed to have the necessary experience to provide advice under this new form of licence.
In a joint statement, CPA Australia and the Institute of Chartered Accountants (ICA) described it as "a good step forward" and said they would be looking closely at the regulations to assess whether they give full effect to the Government's earlier policy announcement.
"The Government outlined a well-designed policy framework back in June and it is critical that we ensure the draft regulations give effect to the policy decisions," said CPA Australia head of business and investment policy, Paul Drum.
ICA general manager of leadership and quality, Yasser El-Ansary, said more detail was still required, although the draft regulations seemed likely to facilitate a smooth transition into the new AFSL regime.
"The draft regulations need to align with the policy intent to recognise the unique experience, training and knowledge professional accountants have," he said.
"There are certain areas that will need to be clarified during the consultation period. A lot of work still needs to be done to ensure the transition into the new framework will be smooth, but it appears that the regulations are heading in the right direction."
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