Radical change in pipeline for SMSF advisers
Time is running out for financial planners and accountants working in the self-managed super fund (SMSF) space to make crucial decisions before legislative changes come in, according to the SMSF Professionals' Association of Australia (SPAA).
SPAA education and professional standards director Graeme Colley said the Federal Government is ushering in the licensing changes this year, and "SMSF advisers will have no choice but to adapt if they want to remain part of this growing industry".
"Under these new regimes, it will be critical for specialist advisers to attain an appropriate level of competence regardless of which professional body they are affiliated with. That will be the key to success," Colley said.
Auditors will soon have to decide whether they wish to continue auditing SMSFs, while accountants will have to make a decision on whether they will apply for a limited licence that takes effect from 1 July - or stay under the current system until 2016.
"SPAA considers the limited licence is an excellent and practical compromise between the current exemption arrangements that are highly restrictive and the provision of fully licenced financial advice including the recommendation of financial products, something accountants do not wish to get involved with."
Colley added that financial planners who provide tax advice will also be impacted, as the proposed changes would bring them within the tax agent regime over a three-year period beginning 1 July, 2013.
"As part of this change financial planners who provide tax advice will need to meet education and experience requirements; satisfy a fitness and propriety test; and follow an approved code of conduct."
Recommended for you
AMP is to launch a digital advice service to provide retirement advice to members of its AMP Super Fund, in partnership with Bravura Solutions.
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
