Time is running out for financial planners and accountants working in the self-managed super fund (SMSF) space to make crucial decisions before legislative changes come in, according to the SMSF Professionals' Association of Australia (SPAA).
SPAA education and professional standards director Graeme Colley said the Federal Government is ushering in the licensing changes this year, and "SMSF advisers will have no choice but to adapt if they want to remain part of this growing industry".
"Under these new regimes, it will be critical for specialist advisers to attain an appropriate level of competence regardless of which professional body they are affiliated with. That will be the key to success," Colley said.
Auditors will soon have to decide whether they wish to continue auditing SMSFs, while accountants will have to make a decision on whether they will apply for a limited licence that takes effect from 1 July – or stay under the current system until 2016.
"SPAA considers the limited licence is an excellent and practical compromise between the current exemption arrangements that are highly restrictive and the provision of fully licenced financial advice including the recommendation of financial products, something accountants do not wish to get involved with."
Colley added that financial planners who provide tax advice will also be impacted, as the proposed changes would bring them within the tax agent regime over a three-year period beginning 1 July, 2013.
"As part of this change financial planners who provide tax advice will need to meet education and experience requirements; satisfy a fitness and propriety test; and follow an approved code of conduct."
