During a panel discussion on the Quality of Advice Review, Bryan Ashenden, BT’s head of financial literacy and advocacy, said many accounting firms have enacted legislation to enable accountants to provide certain types of strategic information. I pointed out that I am making a proposal for an amendment. Advice — contains SMSF advice.
“IPA’s filing speaks to how the limited licensing regime was poorly designed from the start and how many accountants had to implement it. [meet new requirements] At the SMSF Association Technical Summit, Ashenden explained:
“We note that the IPA, together with the Institute of Chartered Accountants ANZ and the SMSF, have made a separate filing regarding the limited licensing rate, outlining a possible alternative model.”
IPA Group Executive, Advocacy and Policy Vicki Stylianou explained that under the proposal, accountants would be able to take certain qualifications out of the financial advice regime and into the tax regime. Tax accountant business law.
“[It would mean] where you have [a] If you have a professional practice certificate and all that is related to it and have additional qualifications in Superannuation and SMSF, advise your clients on regular tax accountant service courses on setting up SMSF and advising clients establishment, liquidation of funds, annuities and contributions,” she explained.
“In essence, we are redefining what tax agent services are under Section 90-5 of the IRS. Tax accountant business law If I were to give this kind of advice in a situation like this, I would say so.
Michel Levy, a partner at Allens and the independent reviewer appointed to lead the advice quality review, commented on the proposal and recommended that exceptions be made for certain experts within the advice regime. said he was concerned about
“I’ve come to the conclusion that I don’t like exceptions. I think they contradict my preferred principles-based approach,” said Levy.
“I’m concerned about making exceptions, and I think you need a very compelling reason to do it.”
Levy also asked whether to consider separating strategic advice from product advice and allowing advisors to provide advice with relaxed compliance requirements if the advice is focused solely on strategy. was also asked about.
Ashenden explained that one of the key concerns for financial advisors is the decoupling of strategy from product.
“As an example, if I want to talk about retirement, am I starting to talk about a class or product, will I be caught under the sanctioned advice regime? There is no such thing, so it could be a product that doesn’t even exist yet.”
Some advisors and industry groups have put forward the idea of separating strategic advice from product advice, reducing disclaimers and shortening the advice so that it can be offered.
Levy said he wasn’t sure whether splitting advice into different types would help.
“In my view, institutions should be broader rather than narrower, rather than fragmented. The ways I think about this include strategic advice, product recommendations, or credit advice. , it should be easier to provide financial advice.
“It seems to me a very strange world to be able to talk about credit under one system and pension interest under another.
“I hope my recommendations address that as a whole. In my view, what is asked of advisors should be tailored to what you are specifically advising.More I think moving to a principles-based regime would make the law more responsive and hold the industry accountable, the question is how ready the industry is for a more principles-based approach. I’m there.”
“I don’t think we should give strategic advice that is different from product recommendations.”
