Accountants on notice on advice and licensing
Accountants have received a thinly-veiled warning from the Australian Securities and Investments Commission (ASIC) that it will be scrutinising the delivery of self-managed superannuation fund (SMSF) advice after 30 June to determine appropriate licensing.
The regulator has used its overview of licensing and professional registrations to drive home the point that it is a aware of accountants who have given SMSF-related advice in the past and which it believes will want to continue to do so.
The ASIC report noted that: "In August 2015, ASIC warned accountants not to leave it to the last minute to apply for a limited AFS licence but, while the number of applications has increased, we consider there may still be a number of recognised accountants who are intending and expecting to offer financial services after 30 June 2016 who have not yet applied for a limited licence or become an authorised representative of an appropriate AFS licensee".
The report made clear that the so-called accountant's exemption will cease from 1 July, adding: "To continue providing such services (with certain limited exemptions), the financial adviser will be required to either hold a ‘limited AFS licence' or become an authorised representative of someone who holds the appropriate AFS licence authorisations".
It said that by the end of the relevant period, in relation to the limited AFS licensing regime, ASIC had received 249 applications, with 84 applications being approved, 124 applications withdrawn; and 41 applications pending.
"As at the date of this report, we have received approximately a further 432 applications," the ASIC report said.
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