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Accounting industry bodies have welcomed proposed reforms to remove an exemption allowing accountants to provide advice on the establishment or closure of self-managed superannuation funds (SMSFs) without holding an Australian Financial Services Licence (ASFL), provided new regulations are both flexible and in the best interests of clients.
The National Institute of Accountants (NIA) has been expecting these changes for some time and has been in discussions with the Government about the upcoming regulatory changes, according to Vicki Stylianou, general manager of representation and innovation at NIA.
“We accept the situation, what we’d like to see is still having a flexible and cost effective system for accountants,” she said.
Given that the first point of contact for most people or businesses seeking SMSF-related advice is their accountant, any sort of licensing regime should be flexible and cost effective to enable accountants to continue to give advice, she said.
A one-size-fits-all solution, such as requiring anyone who provides advice to be RG 146 compliant, would not be in the best interests of all parties, she said
With all the reviews underway at the moment the regulatory burden is “getting to the ridiculous stage,” Stylianou said, and any changes needed to be introduced in a coordinated and considered way – rather than being rushed in to suit an election timetable.
CPA Australia chief executive Alex Malley said the CPA was looking forward to working with the Government to develop an appropriate solution.
“We have been of the view that the exemption did not work anyway and needed to be reviewed,” he said.
“Many accountants already have arrangements in place, such as holding an ASFL, employing a financial planner in house, or outsourcing or referring clients to a financial planner, in order to be able to provide clients with full investment and financial product advice,” Malley said.
“The important issue is that consumers should be able to access simple non-product-specific financial advice from their trusted adviser: their accountant. The recent deferment of the application of the tax agent services regime to financial planners highlights the need for the industry and Government to work together to develop a consistent approach to allow consumers to access basic affordable financial and tax advice across the financial services industry.”
