If the accountant’s exemption is removed when the second tranche of draft Future of Financial Advice (FOFA) legislation is released shortly, it will have positive implications for self-managed super fund (SMSF) trustees, according to SMSF Partners.
If the exemption is removed, it may improve access to advice for SMSF members who rely on their accountant for advice on their SMSF, but don’t feel they need a planner for full investment advice, according to boutique SMSF focused dealer group SMSF Partners.
Many clients already have a trusted relationship with their accountant and removing the exemption would create certainty that a licensed accountant can advise on an SMSF in accordance with compliance requirements, said Rebekah Blake, adviser alliances, SMSF Partners.
Removing the exemption would also provide certainty to accountants who will know they need to obtain the licence – if they haven’t already – to advise on SMSFs, she said.
Currently there is a grey area for accountants who give advice on SMSFs and removing the exemption would clear up their obligations, and accountants would then need to decide whether to obtain the licence to become a specialist SMSF adviser or give away their existing advice work to focus on tax and compliance work, Blake said.
SMSF Partners chief executive David Mardell said members have comfort now knowing all accountants will be on a level playing field in terms of education and licensing.
Accountants that only want to be licensed to give advice will not find many options available in terms of larger dealer groups that retain a product distribution focus and may not fit with a fully fee for service remuneration model, he said. With the proposed sale of Count Financial to the Commonwealth Bank, independent dealer groups are few and far between, he said.
