SMSF licensing delays caused by training confusion
Accountants are putting off the decision on licensing due to confusion around completing RG 105 and RG 146, says Licensing for Accountants chief executive Kath Bowler.
Ms Bowler explained many accountants do not understand they need to complete some form of RG 146 training and RG 105, nor do they understand which units they will need in order to provide the advice they want to.
Licensing requirements will vary from licensee to licensee, she explained, and generally, the minimum training accountants need to complete is RG 105 and the financial advice, superannuation and SMSF components of RG 146.
“It can be quite confusing to an accountant who thinks all they need to do is two units when in fact that’s not going to satisfy their needs on what they want to advise on,” she said.
Ms Bowler added an analysis undertaken by Licensing for Accountants indicates that most accountants will want to do more than just the basics.
However, she also pointed out training providers and licensees could themselves be part of the reason why accountants are unclear on what training they actually need to complete.
“I have some concerns with both education providers and licensees who are perhaps suggesting that accountants only need to complete a limited amount of training and it will solve all their licensing needs,” Ms Bowler said.
“It may solve some, but there’s a suggestion [by these licensees and providers] that one size fits all.”
The costs relating to limited licensing are also unclear, according to Ms Bowler.
“I’ve seen anything from $3,000 to $130,000 to get a licence, so there’s got to be something a little more realistic in that range. We’d like to get some further clarity for accountants on that as well,” she said.
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