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.

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“Premium was founded by accountants and alignment with accountancy practices and principles have always been central to our business,” he said.   “Accountants are among the most trusted professions.  And as we know, sadly advisors still do not have the perception of trust they merit.   We think that many of the other initiatives introduced via FOFA will only have a small impact on rebuilding this trust in the eyes of the community.

“We believe this new accountant’s licencing initiative will increase the uptake of advice and help move financial advice into the status of a profession.

Mr Harding-Davis said it was a natural progression for the firm to offer licencing to accountancy firms.

“We will offer the three tiers of licencing and the support services that go along with it, such as monitoring, audit and training.  Additionally, accountants will need to be RG146 compliant, so we will provide access to the necessary training packages, along with a sensible pricing model.”

“We also believe the referral opportunities this will create will be of significant value for the advisors in our network. We think it’s unlikely that all accountants will want to get involved in the specific investment or insurance product decisions by clients, so reliance upon the knowledge of advisors will be essential in this regard.”

The step by Premium is the latest initiative in an active growth strategy.

“We have recently increased the number or advisors in our network and are in discussions with a number of others. We also recently announced that we have formed an alliance with The Emerald Club to provide licensee and dealer group support for members.”

“We think this latest initiative will further enhance the attractiveness of our Group for firms who wish to remain free from institutional imperatives.”

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