Independent financial planning firm Royston Capital has revealed its new licensing solution has been tailored for smaller accounting firms looking to continue their SMSF business with as minimal disruption as possible.
Royston Capital director Chris Boag said the offering, which was available by invitation-only, was different to what was currently available in the market.
“There are those accountants where being licensed through an institution and other larger financial services firms will suit them and their business model,” Boag told selfmanagedsuper.
“We’re not trying to compete with those organisations as I think they’re providing very good options for the majority of accountants out there, but our offering is not designed or intended to be a mass-market offering.
“We’re generally looking to deal with smaller accountant groups, so it will be possible for us to be far more tailored and bespoke, with the ability to work far more closely and hand-in-hand with our accountants. That’s really what our objective is.”
As a result, accountants would be better trained in the financial services legislative requirements and environment, he said.
“We will be more of an extension of their existing business, rather than something that they’re buying into,” he said.
“Accountants want to continue to provide advice to their clients in the way that they have been able to over the last few years and advice in relation to SMSFs is similar in some ways to the way they provide advice on family trusts and other structures.”
Royston Capital was already in talks with one firm to take up the licence and was in active discussions mainly with single-person practices or two-to-five-partner firms, he revealed.
“At the smaller end of accounting groups, so your partnerships and smaller corporates, the decision to become licensed is a far greater decision and has bigger implications compared to a larger accounting firm,” he said, adding accountants had been highly receptive to the idea so far.
“Of the accountants we’re speaking to, they are more interested in the limited licence as they’re primarily looking to do the same business that they have been doing to date.
“We haven’t specifically been speaking to anyone who’s interested in full licensing. If they’re interested in a full licence, they would already be heading down that path.”
Royston Capital would have a focus on Melbourne accounting firms due to its location, he said.
“But we are hoping to chat to a couple of firms in Brisbane and Sydney as we have some clients in these areas, so accounting firms in the east coast predominantly,” he said.
“We’re certainly encouraging accountants to act sooner rather than later because if you can take action now and start implementing the processes and new way of doing business, it will be a far smoother transaction than if they act at the last minute.”