Accountant exemption removal could lower financial advice access
The Institute of Public Accountants (IPA) has responded to suggestions from SMSF Partners that the removal of the accountants' exemption for on self-managed super funds (SMSFs) will be good for clients, saying it could reduce access to advice.
It will depend on the form the next tranche of Future of Financial Advice (FOFA) legislation takes, but there is concern that accountants will need to go through a complicated and expensive process in order to be able to continue to advice on SMSFs, according to IPA member integrity manager Reece Agland.
If this happens it's possible that many accountants won't take it up, reducing the ability of clients to get cost effective information regarding SMSFs, he said.
"We're not against removal of the exemption but we want to make sure that whatever we get is something that works and we're not too sure that we're going to get there," he said.
Agland also expressed concern over a potentially cumbersome licensing system and said he hoped that where Accounting Professional and Ethical Standards Board (APESB) requirements are in line with Australian Securities and Investments Commission (ASIC) requirements then ASIC would not consider it necessary to replicate anything.
Another issue is the implementation timeframe, and Agland said he hoped there would be at least a two-year period for accountants to do what is necessary to become licensed.
"Doing the RG 146 course will be expensive, but it's something we have to do; it's all the other processes of actually putting in an application that's a concern," he said.
"Our optimal outcome would be at least a two year transition, a simplified licensing system that's low cost and one that recognises the experience that accountants have."
AUTHOR
Chris Kennedy
Recommended for you
With Fortnum Private Wealth and Professional Financial Services now unified under the Entireti umbrella company, CEO Neil Younger has detailed to Money Management the firm’s new direction and future expansion.
There may be a huge influx of alternatives coming to the market, but timing and access difficulties mean advisers can easily end up disappointed with their selection, according to Morningstar global CIO Dan Kemp.
An NSW individual has pleaded guilty to one criminal charge of providing unlicensed financial services after promoting crypto investments at national seminars.
Minister for Financial Services, Stephen Jones, has said he did not expect backlash to changes around advice fee deduction and believes the second tranche will have greater impact, committing to enact it by May 2025.
