The Institute of Public Accountants (IPA) has backed calls by the Australian Securities and Investments Commission (ASIC) for accountants to stop delaying engaging in the limited licensing regime which replaces the accountants exemption from 30 June, next year.
The IPA chief executive, Andrew Conway said that ASIC had issued fair warning to accountants who wished to provide self-managed superannuation fund (SMSF) advice under the new licensing regime.
"The IPA has constantly advised accountants that they should consider their future business models in light of Future of Financial Advice (FoFA) reforms," Conway said.
"We note ASIC's considerable concern that only 160 applications for a limited Australian Financial Services Licence (AFSL) have been received and only 70 granted to date."
"If an accountant who does not want to become an authorised representative of an AFSL but wants to continue to provide SMSF advice to their clients, he or she will need a limited license under the FoFA legislation."
Conway noted that ASIC had warned that accountants needed to lodge applications to meet ASIC's requirements by 1 March 2016, or run the risk of their application not being assessed before the 30 June deadline.