ASIC predicts practitioners will exit SMSF advice

ASIC commissioner Greg Tanzer has said he believes many accountants have “changed their business model” and could stop providing SMSF advice themselves, despite an increase in the number of applications received for a limited licence.

Katarina Taurian -

Monday, 7 Mar 2016 0 comments

Speaking to AccountantsDaily's sister publication SMSF Adviser, ASIC said that as at 22 February, it has received 323 applications for a limited licence. So far, 95 applications have been approved.

The number of applications received since 28 January this year has increased by 47, and the number of applications it has approved has increased by seven.

In a podcast released last week, Mr Tanzer said he is confident accountants are well aware of their obligations after 30 June if they wish to continue providing SMSF advice.

“We think that probably a lot of people have decided either not to get a limited licence and actually to operate under someone else’s licence, or that they have changed their business model so that they won’t be advising on establishing or operating an SMSF, but instead they’ll be referring that business to somebody who is,” Mr Tanzer said.

“The key message from us to you is you need to do one of those things. You need to apply for a limited licence in your own right, you need to operate or make an arrangement with a person who has a licence so that you can continue to give that advice, or you need to stop giving the advice and just refer that sort of business to somebody who is licensed to do it,” he added.

“Frankly, if you decide after 1 July to give advice on establishing or operating an SMSF and you don’t have the requisite licence, where you’re not operating under a licence for someone who does, you’re acting illegally. Then you’re joining the club with the investment scammers, the property spruikers, and all of the other people who choose to operate illegally.”