While a limited Australian financial services licence in view of the accountants' exemption deadline for advising on self-managed superannuation funds (SMSFs) may seem like a more cost-effective option, the costs will equal those of a full AFSL holder when all the back office, continuing support and professional indemnity considerations are taken into account, warned a wealth management executive warned.
Paradigm Group's chief executive, Bill Danaher, said many accountants would become authorised representatives under an authority holder or opt out altogether.
"It's obvious from the very low number of AFSL applications received by ASIC (Australian Securities and Investments Commission) that many accountants have realised the enormity of the legal, regulatory, operational, resourcing and PI requirements that will be needed," Danaher said.
The comments came as Paradigm launched a bespoke, end-to-end offering to accounting practices that are looking for an outsourced AFSL facility with the delivery of advisory services.
Accountants will receive assistance with the preparation of investment strategy for their clients including asset allocation and insurance as well as back office support, including preparing a statement of advice, and technical support.
However, Paradigm warned it was not a ‘volume' offering and said the accounting practices had to be a cultural and operational fit within Paradigm's business model.