The corporate regulator has finalised a review of SMSF advice following the changes to licensing for accountants.
ASIC said the review was designed to identify unlicensed accountants recommending clients to set up SMSFs.
“The review found no systemic concerns around the provision of unlicensed SMSF advice but did identify significant levels of inaccurate and out of date information on websites and in promotional material of accountants reviewed,” ASIC said in its statement.
ASIC said it used a broad range of sources to identify accountants who were potentially providing unlicensed SMSF advice, including information provided by the ATO, information obtained in the course of ASIC’s current project looking at the quality of SMSF advice and information available from AFS licence applications provided to ASIC.
It also looked at reports of misconduct from members of the public, the outputs of a regulatory technology tool used to scan accountants’ websites for potential compliance issues, search results produced by a social media analytics platform used to scan statements made on blog posts, forums, social media, and publicly available advertisements or statements about SMSF services or specialisation.
“Further enquiries revealed that most of the accountants identified were not providing unlicensed SMSF advice,” ASIC stated.
ASIC said as part of its review, it targeted accountants where the services listed on their website had not been updated to reflect changes since the accountants’ exemption was repealed on 1 July 2016 or where the information on their website was incomplete.
“For example, websites did not state AFS licence details, or that an accountant was an authorised representative or had a referral arrangement in place,” the corporate regulator explained.
“ASIC has followed up with all accountants identified as part of the review who need to update their website.”
ASIC reminded accountants who may not have updated their service or AFS licence details on their websites, to do so.
“Having clear and accurate disclosure of any relevant AFS licences, as well as services provided and who provides them, is important for consumers and should avoid future misunderstandings,” the corporate regulator said.
“ASIC continues to make enquiries of five accountants whose services we have concerns about, and will take appropriate regulatory action where necessary.”
ASIC stated it will continue to work with the ATO to identify any accountants who may be providing unlicensed SMSF advice.
I can only laugh. I remember once I had a BDM sitting in the waiting room of the local accounting firm to see me. He asked “Do you have a stockbroker working for you” I said NO it’s the accountant giving out “tips” to his SMSF clients. I’ve also seen the accountants provide on 1 single sheet A4 paper in a 30 minute appointment the strategy of settting up a SMSF, rolling over industry super monies into it (except $5K to pay for insurance) and then the SMSF buys the business real property from Mum and Dad in turn extinguishing their personal debt. The consumer protection document handed out was a scrappy piece of A4 paper, with a picture taking 30 minutes all up.
Just after that the 20 year old graduate accountant tells a client to start a pension and we’ll send out the paperwork. The call takes about Five minutes whilst I spend Five hours doing the same thing for a SoA.
I’m not having a go at accountants, after all I’m partly jealous it’s just bizarre…and wrong when we’re in an age of consumer protection..
Yep it’s still happening for bucket loads of AFSL advice with both AFSL Accountants or non AFSL accountants guilty. And ASIC has still never, every busted a single accountant for providing these AFSL services with zero AFSL compliance.
Is this where I feign shock?
That is one of the weakness excuses for an investigation I have ever heard of. I personally provided ASIC with 5 accounting firms names, examples of non disclosure, false and misleading advertising, unlicensed advice. The information provided to ASIC included the Name, Address, website and screen shots of the websites. I followed this up only to be told that these matters are not being looked at. What the daylights is going on, no shadow shop, no investigation, a minor audit sample of token gesturing to be seen as doing something.
You should see the window advertising around here. “SMSF and borrowing to purchase Property” no AFSL whatsoever.
And franchise tax firms smsf establishment here no AFSL either.
And while you’re at it, an investigation into ISA funds advice and fee for no service may be worthwhile, huh?
In the current times of questioning, i would have thought ASIC may have actually done some real investigating and real research into this matter. Great way to prove to us all that it is indeed time for major changes in the upper positions of ASIC.
“The review found no systemic concerns around the provision of unlicensed SMSF advice but did identify significant levels of inaccurate and out of date information on websites and in promotional material of accountants reviewed,” ASIC said in its statement. Really, honestly. This shows that ASIC is again asleep on the job!
AISC, besides the very narrow focus of SMSF set up only, how about the buckets loads of other strategic AFSL SMSF advice that accountants still do, licensed or not, with zero AFSL compliance.
– Pension implementation advice,
– Contribution advice of many varieties,
– Pension roll back advice,
– Death Benefit nomination advice,
Not hard to find ASIC if you really looked ?
^^this is 100% spot on. Just goes to show ASIC’s investigation was clearly not very thorough. Accountants by the thousands are very clearly still providing advice and implementing such transactions. However you didnt mention anything about those templated investment strategies though….
Interesting space at the moment – if a client has had an SMSF for years, managed their own funds (via help of accountant) but always had the accountant do the ‘red tape’, what licensed adviser is going to want to get involved given the complexity of compliance requirements when providing advice in this space… A lot of trustees also dont want to pay for it.
The amount of SMSF’ that still dont even have a valid, documented investment strategy is baffling….
I thought only financial advisers did the wrong thing. Had to get my sarcasm out for the day. Makes me wonder how easy it would be to have a RC into any industry in Australia and give countless poor examples of conduct as we’ve seen recently. Starting with politicians.
Every man and his dog knows that accountants have always provided unlicensed advice, and will continue to do so, hiding behind the fact that there is no paper trail because they never provide written advice. How about a shadow shopping exercise ASIC instead of a lazy attempt of checking websites.