Greg Hayes, director of accounting and advisory firm Hayes Knight, told AccountantsDaily he predicts that a significant portion of accountants will simply not be ready with their licensing and authorisation processes, with a flurry of activity to take place in late June and early July.
“My best estimate at this stage is that 20 to 25 per cent of the eventual market that is to be covered under an authorisation or a licence won’t be ready by 1 July,” Mr Hayes said.
“That will possibly drip through into the third quarter of next year, and possibly even a small amount into the fourth quarter of next year,” he added.
According to Mr Hayes, although the majority of accountants may have made the decision as to which path to undertake, they will not act until closer to the deadline date.
“Accountants don’t want to do something until nearer the due date because they understand that they’re covered by the transitional provisions,” Mr Hayes stated.
Mr Hayes added that acting as an authorised representative has proved to be the more attractive option for those accountants undertaking the licensing process.
“We’re seeing that without question, the greater proportion of accountants are going to go for a limited authorisation rather than a limited licence, and the lack of numbers with ASIC seems to back that up,” he added, referencing the 204 applications ASIC had received for a limited licence as of mid-November.
For those accountants who miss the ASIC deadline, Mr Hayes noted that it would “not be the end of the world”. However, limits would have to be implemented within their respective firms on the nature of services offered until their licensing processes have been completed.