SISFA: No new designations for SMSFs
Financial advisers do not need to gain extra qualifications to advise on self-managed super funds (SMSFs), apart from the requirements of the Financial Services Reform Act (FSRA), according to the chief executive of the Small Independent Super Funds Association (SISFA), Graeme McDougall.
According to McDougall, advisers who have reached the competency standards for superannuation as part of Policy Statement (PS) 146 will not need to attain any further designations, despite reports that ASIC was considering a new licence for this market.
ASICdirector of FSRA licensing Pauline Vamos has stated on a number of occasions, including most recently at the Investment and Financial Services Association conference in Cairns last month, that advisers will be cleared to provide SMSF advice under PS 146 and no other plans were on the table ahead of the FSRA start date of March 11 next year.
“There is some confusion in the industry about superannuation education but to advise on superannuation an adviser must be licensed and assessed on their skills under FSRA, but there is no new licence available nor is there one planned,” McDougall says.
He has also warned financial advisers to consider what education courses they undertake, as while a number of courses exist, only draft standards are available from the National Finance Industry Training Advisory Board covering further education standards.
SISFA is, however, pushing for further improvements in superannuation education, claiming the Superannuation Industry (Supervision) (SIS) Act requires compliance skills which are not picked up under PS 146 to provide advice on superannuation.
“SMSFs are a product covered by the FSRA, but the SIS Act requires compliance skills which are regulated by the tax office. At present, there are no assessments for these skills at all,” McDougall says.
He says these skills are necessary, particularly for those advisers who plan on advising on a range of superannuation products, such as retail, corporate and industry funds, as well as SMSFs.
AUTHOR
Jason Spits
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