For SMSF advisers, 2013 will be like no other.
Changes in the pipeline for specialist auditors, accountants, and financial advisers will radically change the way they do business – and the need to be professionally competent never more acute.
SPAA Education and Professional Standards Director Graeme Colley says: “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 advisors to attain an appropriate level of competence regardless of which professional body they are affiliated with. That will be the key to success.”
“Auditors have to decide whether they wish to continue auditing self-managed superannuation funds and remain part of this rapidly changing industry.
“If they are staying then they will need to get their application to ASIC by April so they will be registered in time for the 1 July start date. As part of this registration process they will need to audit at least 20 funds and meet certain educational requirements of which the SPAA SSAud designation is an option.
“Accountants who provide advice on SMSFs will need to decide whether they apply for a limited licence that takes effect from 1 July or stay under the current system until 2016. The Government’s new form of financial advice licence could see up to 10,000 accountants providing a broader range of advice on SMSFs than they do now.”
“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.”
Mr Colley says financial planners who provide tax advice in the context of providing financial advice will also be impacted. Proposed changes will bring them within the tax agent regime over a three-year period beginning 1 July.
“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.”
Mr Colley says SPAA is largely supportive of these changes. “As the pre-eminent organisation in the SMSF sector, we believe these changes will encourage and improve the levels of professionalism at a time when the SMSF industry is growing apace and fund trustees have never been more in need of quality specialist advice.”
