Liz Ward

The SMSF Association’s 2017 Technical Day sessions are throwing some much-needed light on the superannuation changes that became law in late 2016 and took effect on 1 July this year.

SMSF specialist Julie Taylor, who is the founder-owner of SMSF administration business, Keep It Simple Super, says the impact of the new regulations is just coming into play and it’s critical all practitioners “get up to speed” as quickly as possible.

Taylor, who was attending the first Technical Day session in Sydney yesterday, says there’s no doubting the degree of complexity that the new regulations have introduced, and this applies to every practitioner working in the SMSF sector.

“From my perspective, there’s still a lot of detail about the new regulations that I need to get across to ensure my clients continue to get the best service from us, and as such this Technical Day has been invaluable to improve my understanding.

What’s been particularly helpful have been the practical sessions attached to each of the four sessions that covered total super balances, transfer balance cap, CGT relief and estate planning.

“The Association’s decision to use the ‘SMSF Family’ concept to illustrate how the technical content plays out in a practical situation is a great innovation. It allows you to get a much better understanding of how the new regulations will have an impact on your clients, and what you need to do in a day-to-day work situation.”

SMSF Association Head of Education and Technical Day organiser Liz Ward says: “We knew that the complexity of the new legislation changes meant that delegates need opportunities to not only hear about the new legislation, but to order to help them embed their understanding, time to reflect, discuss and apply their knowledge in a supportive environment, so the Technical Day was planned with this in mind.

“Our members tell us they really value the chance to discuss complex content in an open forum and to share with their fellow professionals what the practical consequences have been for their clients and businesses.”

The Technical Day moves to Melbourne today, Adelaide on 25 July and Perth on 27 July.

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Liz Ward

The SMSF Association Technical Day will be one of the first superannuation conference offerings in the post 1 July super landscape, giving members the opportunity to discuss the new measures that took effect on that date and share with fellow professionals what the practical consequences have been for their clients and businesses.

SMSF Association Head of Education and Technical Day organiser Liz Ward says: “With the most significant changes to superannuation for a decade taking effect on 1 July, we want this year’s Technical Day to support delegates by providing time to reflect on, work through and resolve the key technical challenges they are experiencing day to day.”

To ensure the Technical Day achieves these goals, the format has shifted to a more in-depth, hands-on program to better allow delegates to come to grips with the key technical issues most concerning them.

The Association has used extensive member feedback and meetings to determine the issues that are “top of mind” with members, and has structured the five SMSF Association Technical Days accordingly. The first event is in Sydney on 18 July, followed by Brisbane (19 July), Melbourne (20 July), Adelaide (25 July) and Perth (27 July).

Ward says there will two innovations at this year’s conference that will enhance delegate engagement.

“A conference workbook that delegates will use during the event will become a ready ‘how-to’ reference document after the conference, continuing the technical support available back at the office.

“The ‘SMSF Family’ concept, which helps illustrate how technical content plays out in a real-life situation that can be related to clients, will be used at the Technical Days following the positive feedback about this presentation approach after this year’s National Conference.”

The four sessions will cover the total super balance rules, the transfer balance cap, CGT relief for funds affected by the 1 July 2017 changes and estate planning under the new rules.

The key speakers will be the Association’s Head of Policy, Jordan George, Head of Technical, Peter Hogan, Colonial First State Executive Manager Craig Day and ATO representatives from its Tax Counsel Network who manage its most significant and complex technical issues.

SMSF Association Technical Day Series is open for registrations

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Liz Ward

Thirty-five students studying event management and financial services have seized the opportunity to do volunteer work at the SMSF National Conference being held at Melbourne Convention & Exhibition Centre from February 15-17.

Speaking about the initiative, Conference organiser and SMSF Association Head of Education Services Liz Ward said: “One of the major challenges that students face is getting work experience to back up their study.

“We had an overwhelming response from students studying event management and financial services and accounting to gain work experience at an event of this size and calibre.”

The SMSF Association National Conference is the largest event in the superannuation and financial services space in Australia. Students have the opportunity to interact with industry experts and network with more than 1700 SMSF professionals.

Having implemented a new state-of-the-art electronic registration and tracking platform to enhance delegates’ engagement, SMSF needed people on the ground to deliver a seamless delegate experience.

Ward says: “Giving students this opportunity is aligned to the Association’s commitment to developing education about self-managed super funds across Australia.

“There is a growing trend for younger people to take up SMSFs, and this volunteer work is just part of the way in which we can spread the SMSF message as an excellent vehicle for people to ensure a dignified and secure retirement.”

Stand-out volunteers have also been offered the opportunity to work at the Association office and get valuable experience in the SMSF industry.

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Liz Ward

The SMSF Association has collaborated with the University of Adelaide to offer an SMSF qualification to SMSF specialists across various professional disciplines.

The qualification, which begins in July and is open for enrolment now, will offer four courses: SMSF Best Practice, Understanding SMSF Trustees, SMSF Strategic Advice and SMSF Advanced Technical. Students will earn a Graduate Certificate in Self-Managed Superannuation Funds and provide RG 146 in SMSF.

Each course will be predominantly done online although there will be an option for a face-to-face session. The minimum study period to earn the Certificate, which can be submitted to the Association for CPD points, is two years part-time.

The cost for the full program will be $12,500. Students will be eligible to apply for assistance via the Federal Government’s FEE-HELP scheme.

David White, Director, International Centre for Financial Services at the University of Adelaide, says this initiative “reflects the growth in the number of specialist advisors in the SMSF sector and their need to continually upgrade their skills.

“We recognised there has been a gap in the market to offer self-managed super fund specialists a graduate-level program, and we’re excited to be collaborating with the Association to offer the program.

“The University has been active in supporting professionals with their SMSF expertise for many years through our Professional Certificate in SMSF program. This Graduate Certificate qualification is the logical next level to add to our suite of SMSF education programs in order to keep pace with the evolution of SMSF advice.”

SMSF Association Head of Education Liz Ward said: “It’s exciting to collaborate with an institution with the reputation of the University of Adelaide to build an SMSF program that will have such wide appeal to specialists working in this field. Building upon current joint initiatives such as certificate course, research and scholarships, this qualification is a natural extension of our relationship.

“The focus will be the practical application of the knowledge they acquire from the qualification, and we are confident it will enhance not only their skill base but be a value-add for their businesses.

“The qualification has the highly regarded SMSF Association designations embedded into the program, enabling students to attain not only an academic qualification but also the Association’s highly sought-after industry designations, including the SMSF Specialist Advisor and SMSF Specialist Auditor.

“By leading the design in the SMSF education framework, it not only supports our members to enhance their professionalism, but helps lift the standards across the SMSF sector,” she says.

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Liz Ward

Time is fast running out for accountants who need a limited Australian Financial Services (AFS) licence to continue advising self-managed superannuation fund (SMSF) trustees after 30 June 2016.

The SMSF Association’s Head of Education Liz Ward says ASIC has repeatedly warned that 31 March is the effective cut-off date for those accountants who want either a limited or full licence.

“After this date the regulator is giving no guarantees that there will be sufficient time for accountants to meet the necessary requirements involved in getting an AFS licence.”

Ward says recent figures from ASIC show that it has only received 226 applications for limited licences and of this number only 78 licences have been issued. This is despite the fact the process has been open for more than two and half years.

“Across the industry there is concern and, to some degree, bewilderment about what the 1000s of accountants who now advise SMSFs are going to do after 30 June.

“The reality is that if they are not operating under an AFS licence (full or limited), or have not established a referral arrangement or joint venture with a party that has an appropriate AFSL, they effectively will only be able to provide tax advice to their SMSF clients.”

Ward says accountants who expect the deadline to be extended will be sorely disappointed. “If you haven’t got your plans well underway by now, you have a problem.

“In our discussions with ASIC, the regulator has made it quite clear that there is no intention to extend the deadline. The official view is accountants have been given more than enough time to get a licence.

“The other point worth making is that accountants doing any work that requires a full or limited licence will have to stop on 30 June, even if they have an application being processed. After 30 June any accountant who provides unlicensed advice risks regulatory action, and providing unlicensed financial services is an offence under the Corporations Act,” she says.

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Liz Ward

Accountants are fast running out of time to become licensed, warns the SMSF Association’s Head of Education Services Liz Ward and Licensing for Accountants CEO Kath Bowler.

“July 1 next year might seem an eon away, but the reality is accountants who want to give financial planning and superannuation advice after this date need to start the process now.

“The first step is for accountants to decide whether they want to be part of the AFS licensing regime, and if the answer is ‘yes’ then you need to begin the training; it typically takes from a minimum of six months up to two years.”

Under the current system, accountants have an exemption under FOFA allowing them to give advice on setting up or winding up an SMSF. This exemption ends on 30 June 2016.

The SMSF Association has been working on this issue with Licensing for Accountants, an independent firm dedicated to guiding accountants through the licensing maze.

Ward and Bowler say: “From July 1, giving advice on setting or winding up an SMSF will be no different to advising on contributions, LRBAs, pensions or TTRs – if it gets into financial planning territory you will need a full or limited licence.

“If you aren’t licensed there is every possibility you will hold your business back, as well as potentially losing financial planning and superannuation revenue and clients to practitioners who are licensed.”

They say some accountants believe they can remain exempt as they only give tax advice.

“The question we’d pose to them is – are you really just giving tax advice?

“Remember, you will need to provide a disclaimer noting that you provide only tax advice, and that your clients must seek advice from a licensed financial adviser.

“But if you are taking other factors into account, such as when they can make contributions, rollover benefits, advice on the fund’s investments or commence an income stream then you will need a license.”

Ward says some accountants are working on the premise that the July 1 deadline will be extended.

“It’s worth remembering there was no extension granted to financial planners when their licensing regime was introduced. I suspect the official attitude will be that accountants have been given ample time to prepare, and it’s hard to argue with that.”

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Liz Ward

The SMSF Association has launched the SMSF Practitioner (SSP^TM) accreditation program specifically designed to independently validate foundation SMSF knowledge and practical skills.

The program, which begins on August 10, will also provide a stepping stone to the SMSF Association SMSF Specialist Advisor (SSA^TM) accreditation.

The Association has established the program in direct response to growing requests from employers in the SMSF sector for a practical, foundation-based SMSF designation for their employees, whether they be financial planners, accountants, lawyers, auditors or any other service provider in the SMSF space.

Association Head of Education Services Liz Ward says: “It’s an encouraging sign that employers have recognised the need for such a designation that offers an ‘excellent opportunity’ for those wanting to take the first step in demonstrating their practical knowledge in the SMSF space.”

She says the program is open to ‘Associate’ SMSF Association members that meet the continuing professional development and quality review program requirements.

“In the initial stages there is no formal coursework to attain the SSP^TM. A coursework option will be available early in 2016 as part of an SMSF post graduate qualification.

“Those that enrol in the new SSP^TM Program will have their SMSF competency tested via an online case-study based examination that simulates a client scenario from initial enquiry of SMSF suitability right through to wind-up of the fund.”

Ward says the exam will have a very practical approach, setting it apart from the Association’s Specialist SSA^TM and SSAud^R Designations. “The SSP^TM program fits into a structure somewhat akin to what happens in other professions. In medicine, for example, there are GPs and specialists, while in the legal profession you have paralegals and lawyers. From our perspective those who earn our new SSP^TM designation could be seen as GPs or paralegals, while those with an SSA^TM are a lawyer or medical specialist.

“As an Association we have long argued for higher education standards and that SMSF advice is a financial services profession in its own right.  This demand for this new SSP^TMdesignation is evidence that our message is striking a chord with employers and that the notion of an SMSF profession is gaining wider traction.”

Ward says that as more Australians choose to take responsibility for their retirement savings through an SMSF it is critical that trustees can access the best possible quality of advice that they can trust.

“The best way to ensure this for SMSF trustees is to keep growing the SMSF profession by providing opportunities for advisers to grow and improve their skills and by making sure consumers can access the best qualified and most professional SMSF advisers.”

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Liz Ward

The peak SMSF organisation, the SMSF Professionals’ Association of Australia’s (SPAA), has launched a new SMSF Trustee Education Program.

The complimentary, online program, developed to assist trustees better understand their responsibilities, has been approved as a recognised SMSF trustee program under the Australian Taxation Office’s (ATO) new trustee penalty regime.

SPAA’s Head of Education Services Liz Ward says: “What this simply means is that when the ATO directs a trustee to complete a SMSF education program after reviewing their SMSF, the SPAA Trustee Education Program is on its approved list.

“What’s also important for trustees to understand is that they can do the SPAA trustee education program without a directive from the ATO – and SPAA urges them to do so because the course, which is split into eight modules, offers critical insights into their obligations as trustees.”

Ward says the course, a SPAA initiative to help build integrity in the SMSF sector, is designed specifically with trustees in mind, addressing their most important questions. “What I need to know, what I can and can’t do with my SMSF and, most importantly, where can I go to for help when I need it?

“Each module has ‘check your knowledge’ questions to help trustees identify what they have learnt and, on successfully completing the program, they are issued with a SPAA Completion Certificate.

“The program is also a great exercise for individuals who are considering establishing an SMSF, giving them a good foundation in all aspects of SMSFs.

“Anyone thinking of starting an SMSF and does the online course will be able to sign the ATO’s mandatory trustee declaration form, confident they understand their role and responsibilities.

“A healthy SMSF sector needs competent participants; it is SMSF trustees, using their own knowledge and skills, combined with their SMSF professional support team, which underpins a sustainable SMSF sector.

“It is very important that trustees, who are taking control of their retirement savings, to also fully understand their responsibilities and avoid any risk of not complying with all regulations – and this course is designed as a good starting point for that knowledge quest,” she says.

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Liz Ward

The SMSF Professionals’ Association of Australia (SPAA) has launched a new professional development tool to support its members on their Continuing Professional Development (CPD) journey as a key component of 2014/15 membership.

Called SPAA SMSF CPD Compass, it is a purpose-built, online questionnaire designed to gauge the level of knowledge individuals have across all technical areas of SMSF, before recommending specific focus areas for upcoming CPD activities.

SPAA Head of Education Liz Ward says “This tool is the first of its kind, finally giving professionals a way to navigate through their CPD journey in a meaningful way.

“We want to see professionals making the most of their CPD requirements by empowering them to pinpoint activities that genuinely improve their knowledge and skills. It’s better for the individual, it’s better for trustees and it’s better for the profession as a whole.”

The launch of SPAA’s new CPD Compass comes only a few months after the official launch of SPAA’s CPD Hub (cpdhub.spaa.asn.au), an online database of accredited CPD activities with advanced searching capabilities able to filter results based on profession, topic, level of knowledge, as well as delivery type, location and cost.

“SPAA is heavily focused on innovating in the area of CPD because we recognise practitioners have a range of obligations to satisfy – from regulators, licensees to professional associations. The volume of information practitioners must understand is also growing exponentially, making it challenging to navigate through the CPD noise.

“SPAA’s CPD Compass and CPD Hub meet that challenge head on and allows members to tailor unique CPD plans based on their individual needs.

“It’s just another way SPAA supports its members and the broader SMSF sector to build professionalism, strengthening the resolve that SPAA members, and particularly SPAA Specialists, are the SMSF professionals of choice for consumers.”  

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Accountants keen to stay in the SMSF space.

One in four accountants who are SPAA members and not operating under a AFSL have decided to apply for a limited licence or become an Authorised Representative (AR) of a licensee now – an encouraging sign considering the accountant’s exemption remains in place until 30 June 2016.

Liz Ward, Head of Education Services for the SMSF Professionals’ Association of Australia (SPAA), says polling done at SPAA events on this issue shows another 50% of members who are not licensed accountants are “seriously considering this option”, with only 25% indicating they might not apply for a limited licence or become an AR.

“This is an encouraging trend, especially when you consider the timeline involved. Quite clearly members are thinking seriously about this issue and we would expect many of those considering this option to ultimately commit to it,” she says.

Ward says it’s imperative that accountants understand there are pros and cons of being an AR as opposed to getting a licence directly with ASIC (either full or limited), and they must decide what best suits their business model.

There are a number of benefits of becoming an AR, especially for those new to the AFSL regime. These include:

• The investment in the licence with ASIC is undertaken by the licensee;
• ARs may have access to more licence authorities than they would receive from ASIC if they went directly;
• All the ongoing requirements are usually met by the licensee, such as initial and ongoing training, PI Insurance, membership of EDR, compliance requirements, disclosure documentation.

Along with the benefits, there are other considerations that might tip the balance towards pursuing other licence avenues; such as:

• ARs pay a regular ongoing fee to the licencee;
• ARs may be subject to strict contractual requirements, particularly regarding supervision, compliance, reporting, client confidentiality, and disclosure documents;
• ARs branding rights may be restricted in favour of the licensees’ branding;
• There could be a conflict between the licensees’ range of business ventures versus the AR’s business.

Ward adds there is also a cost issue. ”There are a range of costs that are being cited; we are hearing that the price to prepare and submit an application for a limited licence may in the vicinity of $25000 – $35000 in the first year.

“This includes compliance consultancy fees to compile the application and having all the components required to support the application in place. A DIY approach is an option and could provide cost savings but like all DIYs usually results in an increase in the time and input required by the individual.

“With either approach, accountants can expect to take up to 12 weeks from beginning to end of the application process, and when added to the required RG146 or other types of training programs they need to do initially, the lead time starts to add up.”

Ward says although three years seems a long time, accountants have to appreciate this is a considerable process and one they need to consider carefully and not leave too late.

“In SPAA’s opinion those who elect to be early adopters of the new regime and formally move into the SMSF advice space (via AFSL or AR) are likely to realise commercial benefits compared with those who come to it late. We are hearing of a number of accountants who are actively positioning their business based on their ‘SMSF expertise’.

“As an association dedicated to SMSF professionals and the provision of quality advice to trustees, we think it is great that there are many accountants that have already formally committed themselves to being in this sector.

“We would encourage those who are thinking, but yet to decide, to research their options and if SMSF advice is part of their business future to take the lead and start moving in that direction,” she says.

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