Many accountants specialising in SMSFs don’t realise the complexities involved in transferring to the new licensing regime system, warns Premium Wealth Management.
The new licensing regime, which comes in to effect on 1 July 2016, will involve for some extensive additional training and an application process that could take longer than previous thought.
Premium Wealth CEO, Paul Harding-Davis, said accountants who are considering becoming licensed to be able to continue to provide SMSF advice need to consider taking steps sooner rather than later to prepare their business and clients for what’s involved in transitioning to the financial planning licensing world.
“Accountants will need to start having conversations with licensees today in relation to finding a cultural fit for their business. Additionally, accountants will need enough time to complete minimum education requirements, obtain PI and also learn the practical side of preparing advice documents, and meeting compliance requirements,” he said. “For example,, as recently as the SPAA conference last week, ASIC reminded all of the need for an accountant to produce an SOA and to have conducted a broad enough fact find.”
“This is not an overnight process and those accountants who leave the transition to the last minute will be behind the eight ball if they wish to continue to provide SMSF advice to their clients after the 2016 deadline.”
Recent reports on accounting practices suggest that only around one third plan to have a licensing framework in place by 1 July, 2013 and many are still unsure of when they would have the appropriate framework in place.
“The earlier accountants begin the process the smoother the transition will be,” said Mr Harding-Davis.
To facilitate in this process, Premium Wealth Management is currently developing practical training workshops for accountants who wish to provide SMSF advice once the current accountant’s exemption ends on 1 July 2016.
Through the workshops accountants who are new to financial planning will also have access to networking and mentoring from Premium’s highly experienced financial advisers, most of whom are also accountants.
The workshops will be part of the licensing services that are available to accountants from Premium Wealth. The program offers three tiers of licensing along with the necessary support services that go with that such as training, professional indemnity insurance, software support, research and planning. The workshops will facilitate the practical application of this support and will help accountants become familiar with the new way of operating.
“We believe the referral opportunities our licensing program will create will be of significant value for both the advisors and the accountants in our network. We think it’s unlikely that all accountants will want to become proficient in specific investment or risk advice, so reliance upon the knowledge of advisors within the group will be essential in this regard,” Mr Harding-Davis said.