The Federal Government has announced a new form of financial advice licence that will ‘significantly increase the availability for financial advice for all Australians’ according to Minister for Financial Services Mr Shorten said.

 

The new limited Australian Financial Services Licence (AFSL) is expected to see up to 10,000 accountants become licensed and able to provide a much broader range of financial advice than they were previously able to.

 

In addition to being able to advise on self-managed superannuation (SMSF) funds and superannuation generally, licence holders will be able to give "class of product advice" on basic deposit products, general and life insurance, securities, and simple managed investment schemes.

 

"This new licence will extend the consumer protection provisions of the Corporations Act, such as the best interests duty in the recently passed Future of Financial Advice reforms, to financial advice provided by accountants," Mr Shorten said.

 

"SMSF audits are an important part of the regulation of the SMSF sector. Auditor registration will increase the assurance that can be placed in the SMSF audit by ensuring that SMSF auditors are competent to detect and report contraventions of the superannuation law.”

 

Auditors will need to meet the following requirements to be registered as an SMSF auditor:

  • hold a tertiary accounting qualification that includes an audit component or have successfully completed study in audit as part of a professional accounting body program;
  • meet a fit and proper test;
  • hold professional indemnity insurance;
  • have 300 hours of SMSF audit experience in the three years prior to registration, subject to transitional arrangements; and
  • pass a competency exam, subject to transitional arrangements.

 

Auditors will be able to apply for registration from 31 January 2013. All auditors must be registered with ASIC by 1 July 2013 to conduct SMSF audits after this time. Auditors required to sit the competency exam will be able to do so from 1 July 2013 and will have until 30 June 2014 to complete the exam and become fully registered.