Watchdog to monitor accountants on SMSF
By Zoe Fielding
ACCOUNTANTS could face fines of up to $220,000 if they provide misleading advice on self-managed super funds.
The Australian Securities andInvestments Commission’s (ASIC) deputy chairman, Jeremy Cooper, warned that limitations applied to the licence exemptions on self-managed super funds (SMSFs) for accountants, and that accountants would be subject to increased surveillance as a result of super choice.
“Accountants who do not have an AFSL [Australian Financial Services Licence] are only allowed to advise a client on the establishment, operation, structuring and valuation of an SMSF, not about investment strategy or whether a client should switch their superannuation savings to one,” he said.
Cooper said ASIC aimed to protect consumers whose superannuation funds were insufficient to justify the costs associated with SMSFs, and those who lacked the time or skills to manage their own funds.
Accountants who failed to inform their clients in writing that they were not licensed to provide financial product advice, had failed to suggest their clients consider taking advice from an AFSL holder, or who provided financial product advice without an appropriate licence could also be penalised.
He said maximum penalties would only apply in cases where accountants had repeatedly failed to meet their obligations, or misled and deceived their clients.
According to Cooper, ASIC will be monitoring complaints, checking data on self-managed super funds from the Australian Prudential Regulation Authority, the Australian Taxation Office and possibly shadow shopping.
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