ASIC issues warning to accountants
The accountants exemption expires on the 1st July 2016 and accountants will be breaking the law if they provide advice on SMSF’s without an AFSL.
“From 1 July 2016, accountants must hold a limited AFSL or be an authorised representative of a licence-holder or licensee in order to provide financial product advice on self-managed superannuation funds,” said ASIC.
“This follows a three-year transition period that commenced on 1 July 2013”, said ASIC.
If you want to know how the accountants exemption will impact your SMSF please call
Martin van der Saag
Director
T: 02 9984 7774
E: martinv@nac.com.au
Cayle Petritsch
SMSF Specialist Advisor
T: 02 9984 7774
E: caylep@nac.com.au
About the author
Marius Fourie - Director & Business Advisor
As Director and Business Advisor, Marius uses his accounting expertise and empathetic skills to work directly with business owners and help them feel at ease with their finances.
Marius saw a common need in clients that just wasn’t being met by accounting providers.
That need was for clear, open communication and streamlined accounting services that didn’t come padded out with any unnecessary features.
Business owners just don’t have time to compare different accounting firms to see which one has the best packages with the best inclusions (many of which they would pay for but never use).
Key Takeaways
Accountants can no longer rely on a historical exemption to provide financial product advice on SMSFs.
From 1 July 2016, that exemption expired and must be replaced with appropriate licensing.
To lawfully give SMSF financial advice, an accountant must hold a limited AFSL or be an authorised representative of a licence-holder.
This aligns SMSF advice requirements with broader financial services regulations.
The warning reflects ASIC’s ongoing focus on ensuring financial advice is properly regulated.
Requiring licensing helps protect consumers and maintain professional standards.
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Frequently Asked Questions
What warning did ASIC issue to accountants?
ASIC warned that accountants must hold an Australian Financial Services Licence (AFSL) or be an authorised representative of a licence-holder if they provide financial product advice on self-managed superannuation funds (SMSFs).
When did the requirement take effect?
The requirement to hold an AFSL or be an authorised representative began on 1 July 2016, when the accountants exemption was removed.
What happens if an accountant provides SMSF advice without an AFSL?
Providing SMSF financial product advice without the required licence or authorisation would be unlawful and could expose the accountant to regulatory action.
What exactly is an AFSL?
An AFSL is a licence issued by ASIC that authorises a person or business to provide certain types of financial services, including financial product advice.
Why did ASIC remove the accountants’ exemption?
ASIC removed the exemption after a three-year transition period to ensure that advice on complex financial products such as SMSFs is provided only by appropriately licensed professionals.
What warning did ASIC issue to accountants from 1 July 2016?
ASIC warned that from 1 July 2016, accountants would be breaking the law if they provided financial product advice about SMSFs unless they held a limited AFSL (Australian Financial Services Licence) or were an authorised representative of a licence holder.
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