Your SMSF might be at risk
Posted by Northadvisory on June 10, 2016
SMSF trustees should brace for a change in the way their accountant deals with them in regards to their Self Managed Superannuation Fund after the 1st July 2016.
From the 1st July 2016, The Australian Securities Investment Commission (ASIC) requires all accountants that give SMSF advice to be licensed. Any accountants who are not licensed from the 1st July 2016 cannot provide SMSF advice to their clients.
Accountants are able to give SMSF advice at the moment as they currently have an exemption under the Future of Financial Advice legislation. This exemption expires on 30th June 2016.
What should you do?
The first step is to contact your accountant to see if they are licensed to give advice on your SMSF. If they are not licensed they may need to refer you to someone who is. You should also discuss with your accountant any additional fees that may incur due to the new licencing requirements. In the past your accountant was able to provide advice casually over the phone or in person and they have probably been doing this for years. From the 1st July 2016 they will no longer be able to do this.
What happens if I receive bad advice?
If you receive bad advice and suffer a material loss from the 1st July 2016 and your accountant isn’t licensed it could mean that any compensation you seek could be affected. This is because they may not have the appropriate level of professional indemnity insurance that covers financial advice. By having an accountant that is licensed to give advice on your SMSF you can be assured that they will have the right level of professional indemnity insurance.
The way accountants deliver SMSF advice is changing. It is important to know these changes and how they are going to affect you. If you have any questions or concerns please feel free to contact;
Martin van der Saag
T: 02 9984 7774
SMSF Specialist Advisor
T: 02 9984 7774
Read more Superannuation articles.