Accountant exemption removal could lower financial advice access
The Institute of Public Accountants (IPA) has responded to suggestions from SMSF Partners that the removal of the accountants' exemption for on self-managed super funds (SMSFs) will be good for clients, saying it could reduce access to advice.
It will depend on the form the next tranche of Future of Financial Advice (FOFA) legislation takes, but there is concern that accountants will need to go through a complicated and expensive process in order to be able to continue to advice on SMSFs, according to IPA member integrity manager Reece Agland.
If this happens it's possible that many accountants won't take it up, reducing the ability of clients to get cost effective information regarding SMSFs, he said.
"We're not against removal of the exemption but we want to make sure that whatever we get is something that works and we're not too sure that we're going to get there," he said.
Agland also expressed concern over a potentially cumbersome licensing system and said he hoped that where Accounting Professional and Ethical Standards Board (APESB) requirements are in line with Australian Securities and Investments Commission (ASIC) requirements then ASIC would not consider it necessary to replicate anything.
Another issue is the implementation timeframe, and Agland said he hoped there would be at least a two-year period for accountants to do what is necessary to become licensed.
"Doing the RG 146 course will be expensive, but it's something we have to do; it's all the other processes of actually putting in an application that's a concern," he said.
"Our optimal outcome would be at least a two year transition, a simplified licensing system that's low cost and one that recognises the experience that accountants have."
Recommended for you
ASIC has launched court proceeding against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
