Future of Financial Advice
As part of the Future of Financial Advice (FoFA) reforms, the government announced that the existing exemption permitting Accountants to provide advice on the establishment and closure of a self managed superannuation fund (SMSF) without holding an Australian Financial Services Licence would be removed.
From 1 July 2016, any Accountant aiming to provide SMSF advice to their clients will need to do so under an Australian Financial Services Licence. These changes will result in many Accountants being brought into the license regime for the first time.
There are now more than 520,000 self managed superannuation funds in Australia controlling more than 530 billion dollars. The members of these funds often look to their long standing and trusted adviser, being their Accountant, for advice. Accountants wanting to secure the long term future of their practice will not be able to sit on the sideline, as they will risk having their clients seek the value added advice they need and want elsewhere.