The new form of financial advice licence for accountants has received widespread support from the financial services industry.
The Financial Planning Association (FPA) chief executive officer Mark Rantall said the repeal of the accountants' exemption would provide confidence and clarity to consumers, accountants and professional financial planners.
But more importantly, he said, the measures would improve consumer access to quality financial advice and complement the best interest components of the Future of Financial Advice (FOFA) reforms, which recently passed through the Senate.
"We expect the proposed conditional licence measures would remove inherent risk and uncertainty and encourage greater industry competition by evening up the disjointed playing field that is part of the current regime," Rantall said.
In addition to providing advice on self-managed superannuation funds (SMSFs) and superannuation generally, the new form of licence – announced by Minister for Financial Services and Superannuation Bill Shorten – would see accountants provide advice on basic deposit products, general and life insurance, securities and simple managed investment schemes as well.
One of the largest accounting and advisory firms in the country – WHK – has also supported the new licensing regime, with head of financial services John Nantes saying the new auditing requirements would "ensure a level playing field for all".
"Professionalising the SMSF sector is something WHK fully supports," Nantes said.
Large institutions such as MLC and BT have made a move in recent months to further develop programs, support services and licensing solutions for accountants in anticipation of this announcement.
MLC national manager for MLC Accountant Solutions Nick Hilton said the new measures would also be "a win for consumers".
"We remain interested in the detail associated with the legislation and also how this licensing regime will relate to the broader FOFA legislation," Hilton said.
The industry has been highly critical of Minister Shorten in recent months, due to the delay in announcing the measures which would ultimately replace the accountants' exemption.
Minister Shorten said the new form of licence would see up to 10,000 accountants provide advice.
