Playing with fire
Late late month, ASIC revealed to SMSF Adviser that it has only received 205 applications for a limited licence. Of those 205, it has approved a mere 78.
Does this give a complete picture of how many accountants are ready for the exemption to expire in June 2016? No. Does it point to a very worrying trend? Yes.
If you’re applying for your own licence, and you haven’t lodged your application by March next year, there’s a good chance ASIC won’t approve it before the exemption is phased out.
“Accountants who do not lodge applications which meet ASIC’s requirements by 1 March 2015 run a significant risk that their application will not be assessed before 30 June 2016,” ASIC said.
“Where an application is in good order, ASIC can assess the application within four weeks, but if further details are required because the information provided is insufficient, this will take longer,” ASIC said.
If you’re becoming an authorised representative, there are still significant education requirements to consider. And although this may be the simpler option from an administrative perspective, accountants can’t rest easy on the assumption that a last-minute job will do.
Once accountants have chosen their licensing path, they will need to undergo training to fulfil those licensing requirements, which relies on the availability of education providers.
“When you look at all the groups that provide that service in the market, they’ve been set up for a number of years to take on maybe 10,000 new advisers over a course of a year.” Count chief executive David Lane previously told SMSF Adviser.
“Now we’re talking about 10,000 accountants… if 5,000 show up in June 2016 saying ‘we really need to do something because on July 1 the world changes’, all of those training groups just couldn’t possibly take them on.”
ASIC seems borderline exasperated at this point. Even the ATO has chimed in of late to encourage accountants to sort out their licensing arrangements. And despite what is looking more and more to be a last-minute licensing rush for the regulator, ASIC has so far outright denied there will be an extension.
The reality? Accountants who are too late will need to wait, and they risk serious regulatory action if they continue to provide SMSF advice post-June 30 next year.
The Institute of Public Accountants’ Vicki Stylianou recently said ASIC is already shadow shopping to monitor accountants’ compliance with the new regulations. She also said you can “pretty much guarantee” that shadow shopping will be increased when the accountants exemption is phased out entirely.
“I know some accountants are thinking it’s all going to go away,” Ms Stylianou said.
“But there is absolutely no sign whatsoever that it is going to go away, and I know some people might be thinking they can just continue doing what they’re doing, but no. It is a completey new world and things will be changing from 30 June.
“So, i urge you to have a think about it and make decisions and act one way or the other.”
Ref: SMSFAdviser, December 2015 Edition
Comments are closed.