Accountant limited licence as expensive as AFSL

15 March 2016
| By Malavika |
image
image
expand image

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.

Read more about:

AUTHOR

 

Recommended for you

 

MARKET INSIGHTS

sub-bg sidebar subscription

Never miss the latest news and developments in wealth management industry

Ralph

How did the licensee not check this - they should be held to task over it. Obviously they are not making sure their sta...

8 hours ago
JOHN GILLIES

Faking exams and falsifying results..... Too stupid to comment on JG...

9 hours ago
PETER JOHNSTON- AIOFP

Must agree to disagree with you on this one Keith, with the Banks/Institutions largely out of advice now is the time to ...

9 hours ago

AustralianSuper and Australian Retirement Trust have posted the financial results for the 2022–23 financial year for their combined 5.3 million members....

9 months 2 weeks ago

A $34 billion fund has come out on top with a 13.3 per cent return in the last 12 months, beating out mega funds like Australian Retirement Trust and Aware Super. ...

9 months 1 week ago

The verdict in the class action case against AMP Financial Planning has been delivered in the Federal Court by Justice Moshinsky....

9 months 3 weeks ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND