Just yesterday i saw a client in regard to insurances. He had a SMSF which was set up by his accountant and whilst doing a Fact Find i discovered that he used to have a Defined Benefit superannuation policy through his current employer (who he had been with for 18 years) . I asked to see a copy of the advice from his accountant in regard to the SMSF as i was curious as to how the accountant could have justified closing a Defined Benefit super in favour of a SMSF without insurances.
Both he and the accountant could not produce any such advice documents other than a brief 3 page statement saying the client had asked for a SMSF (which the client denied asking for and was instead sold).
Now. As there is no advice paperwork the client has no recource to sue as the accountant can say he was acting on the wishes of the client, even though the outcome has cost many thousands of dollars and the clients super balance has been eroded by poor investments and lost the benefits of his wonderful company super. Thankfully i was able to set up some insurances.
Accountants. You should not be able to provide financial advice to clients. You dont know what you are doing and the only way to learn is to adhere to the rigerous compliance and training standards as qualified financial advisers.
Allowing accountants to provide unregulated, unsupervised and undocumented advice is similar to alloing a dentist to diagnose and treat lung cancer patients. Yes they are in a similar field however they have very limited knowlegde in the field they are assisting their patients with.
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