Capstone and BGL to provide AFSL authorisations
Capstone Financial Planning has formed a strategic business partnership with BGL Corporate Solutions geared at delivering an online Australian Financial Service Licence (AFSL) Authorisation program.
The move comes in response to new legislation enforced from July 1 next year, when accountantss seeking to provide financial advice — including advice pertaining to self-managed super funds (SMSFs) — will need to hold an AFSL or operate under an AFSL.
"We wanted to find a way to help our clients comply with the post 1 July 2016 licensing regime," said Ron Lesh, managing director of BGL.
"We needed a tiered solution that made it easy for our clients to get into licensing in small steps and Capstone was able to provide us with a simple way to do this".
The program is a purpose‐built solution that includes a web portal containing relevant information for BGL clients about authorisation, as well as an online application system that enables users to complete and submit an application. It also allows users to have current qualifications assessed in order to find a solution that suits their business.
Current legislature introduced by the Financial Services Regime in 2002 allows accountants, under the ‘Accountant's Exemption', to provide advice on the establishment of SMSFs without the need for an AFS licence.
However, with the Accountant's Exemption now being phased out, Capstone's Managing Director Grant O'Riley said the new program will help streamline the process for accountants by making it easier for them to meet their requirements and obligations under the new laws.
"It's become apparent from our discussions that many accountants are still confused about the forthcoming changes and what the removal of the Accountants' Exemption really means for them and their business operations," he said.
According to O'Riley, the AFSL Authorisation solution is also a foundational step towards facilitating further collaboration and other business solutions between the two groups.
"Further exciting technology based opportunities [will] arise to simplify the advice process for accountants," O'Riley said.
"In addition to the education and competency requirements, there are significant adjustments to business processes that also need to be considered."
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
