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But it finds no reason to exclude accountants from the regulatory framework.
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Getting advice from accountants will be easier: QAR final report
08 February 2023
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It will be easier for accountants to provide financial advice if the recommendations of the Quality of Advice Review final report, which has just been published, are adopted.
But accountants should be included within the advice regulation framework said Michelle Levy, who conducted the review, because she could see no reason for an exemption or changes to the advice accountants can give.
“The recommendations I make in this report will make it easier for all advice providers, including accountants who are authorised by an AFS licensee to provide this advice, to provide personal advice to their clients. It will also make it easier for them to provide limited or one-off advice,” Ms Levy said in the QAR final report.
“For all of these reasons, I am not recommending any changes to the advice accountants (and more broadly registered tax agents) can give. I think there are sufficient exceptions and options that accountants and registered tax agents can choose from to adapt their business model as required, depending on what advice they want to provide to their clients.”
“Also, while there does not appear to be much merit in holding a limited AFS licence, my recommendations will not stop those who wish to do so (or take it away from those who already hold one).”
She acknowledged that “the associations representing accountants and SMSF professionals wanted accountants to be able to provide advice more broadly about superannuation needs, including whether to establish a SMSF without an AFS licence, limited or otherwise, and without being a representative of an AFS licensee”.
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She also recognised that research showed consumers were willing to look to a range of providers for financial advice, including accountants.
But Ms Levy said accountants did not warrant an exception from the regulatory framework.
“Accountants play an important role in assisting their clients with their financial arrangements. They are a trusted source of advice for their clients, and for the many who are registered tax agents they are required to meet education and training standards under the TAS Act.
“However, this does not mean they should be given an exemption from the framework that regulates the provision of financial advice.
“They have expertise in tax matters. Tax is a critically important aspect of superannuation, but the matters that are relevant to a decision to establish and maintain a SMSF and to rollover superannuation into a SMSF are much broader than those relating to tax.
“Advice on superannuation products, including interests in SMSFs, is financial product advice. And it should be regulated as financial product advice. I do not see any reason for making an exception.
“This will ensure that consumers who receive this advice will do so with the same protections as all other recipients of financial product advice, including that the advice is good advice (if it is personal advice), the requirement for advice providers to act in their best interests (if a fee is charged for the advice) and access to AFCA, just to name a few.”
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