Count backs accountants’ right to advise

Count Financialhas weighed in on heated industry debate over whether accountants should be able to provide advice on superannuation fund structures without an Australian Financial Services Licence (AFSL).

In the group’s latest quarterly business report, Count says that the group agrees with accounting bodies such asCPA Australiathat they should not need an AFSL to provide advice on structures.

However, the Count group believes that once having advised on the suitability of a fund structure, such as a DIY fund, accountants will then need an AFSL if they are to advise on investments.

The comments come after a recommendation by the Federal Joint Parliamentary Committee on Corporations and Financial Services that accountants be able to provide this type of advice without an AFSL.

CPA Australiafinancial planning manager Kath Bowler was in favour of this recommendation, as she says that clients may be facing poorer and fragmented advice if accountants were prevented from advising on structures.

TheInvestment and Financial Services Association(IFSA) and theFinancial Planning Association(FPA) attacked the decision due to the implications it would have for licensing under the Financial Services Reform Act (FSRA).

Count Financial has an interest in the decision on structures, which will go before the Federal Government, due to the group’s being predominantly made up of accountants as well as having recently launched a new DIY Superannuation Administration Service.

In the statement, Count says that the investment business of the group continues to be impacted by the aftermath of very poor markets, though it is still growing.

However, the group says its previous operating profit guidance of no less than $8 million remains unchanged.

Count says that the non-investment business continues to grow at record levels and is one of the main reasons, along with cost control and continued growth in the core business, for the group’s profit performance.