Limited licensing could bridge accountant-adviser gap
Limited licensing for accountants may be the best opportunity for financial planners and accountants to bridge the gap in their relationship through peer to peer mentoring to accounting firms by planners.
Such was the view of Complete Super Solutions' chief executive officer, Martin Morris, who noted that the focus of the business referral relationship between accountants and planners had always been on third party client outcome rather than peer to peer outcomes but said the limited licensing arrangement could change this.
"Advisers can use their sector experience to provide tangible, immediate and measurable value to an accounting practice principle, and by doing so, can lay the foundations for a long-term relationship," Morris said.
"A true proactive relationship of any kind is generated through ongoing delivery of mutual benefits. A reactionary referral agreement is not a partnership but rather an arrangement with limited goals."
Advisers, along with licensees and consultants, could guide the accounting sector through issues like licensing, providing financial advice, and understanding limitations of product recommendation authorisations, Morris said.
He added that accountants would have to outsource elements of the advice process beyond the scope of their licensing arrangements, particularly if it fell outside their product recommendation authorisations.
"Who will they turn to in this instance and will planning practices be ready to take advantage of this relationship building opportunity? Or will they fall into old habits and wait for the business to come to them?" Morris asked.
The comments came as the accountants' exemption, which allowed accountants to provide advice on setting up self-managed superannuation funds without the need for an Australian financial services licence, was due to terminate on 1 July this year.
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