The Australian Securities and Investments Commission (ASIC) will be pursuing a hard enforcement line once the new licensing regime governing accountants offering SMSF advice comes into play, according to a senior executive of a peak accounting body.
“I don’t think it’s been a problem so far, but I think it will be a problem come the end of the accountants’ exemption,” Institute of Public Accountants policy general manager Tony Greco said at the recent selfmanagedsuper/CoreData SMSF Accountants’ Day.
“ASIC will be looking for scalps because they want everyone who is providing financial advice to sing from the same hymn sheet essentially.”
Greco said the corporate regulator was most concerned about areas where practitioners, such as property spruikers and accountants, were seen to be bypassing the licensed advisory channels.
“ASIC wants to ensure that all advice regardless of who it’s been provided by works under the same rules and there are absolute big holes in the current system,” he said.
In particular, he pointed out current situations where clients had made their minds up to run an SMSF but were still seeking guidance from their accountant, and receiving it, would not be allowed to continue.
“All of the accountants are predominantly breaking the law as we speak because the clients want some indication from their trusted adviser as to what they should do,” he said.
While those actions currently would not fall foul of the regulator, accountants could still find themselves in trouble of another kind, he said.
“To this day the only exposure accountants have is if there is ever a claim going forward [challenging the advice received], you’re going to find that your PI (professional indemnity) cover doesn’t allow you to provide financial advice,” he said.
