The existing exemption allows accountants who do not hold an Australian Financial Service License to provide advice on the establishment of self-managed superannuation funds (SMSFs). However from 1 July the government plans to withdraw this exemption, which could have significant implications on the way that accountants deal with SMSFs. There are concerns from a number of accounting bodies that accountants will need to go through a complicated and expensive process in order to be able to continue to advise on SMSFs.

Consultation is ongoing but according to the Treasury website, the measures discussed by ASIC, Treasury and the accounting bodies to date include ASIC recognising relevant experience of accountants for licensing purposes; granting licences that relate to classes of financial products rather than specific financial products; and providing specific guidance about how a typical accountant might apply for a licence. These are positive steps and we can only hope that a middle ground is reached without further complicating the Financial Services Licensing regime.

SMSFs form a major component of financial and tax planning and in our view it is imperative that Accountants and Financial Planners be involved in this process. Although the FOFA reforms’ main objective is to ensure consumers are protected, the Government needs to be careful not to build up too many barriers for clients to access high quality and cost effective advice.