The Minister for Financial Services has announced the long-awaited replacement for the accountants’ exemption re providing superannuation and financial advice. On Saturday, 23 June 2012, the Minister announced a new limited Australian Financial Services Licence (AFSL) for accountants. In addition to being able to advise on self-managed superannuation 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. There will be public consultation on draft regulations to give effect to these measures in the second half of the year.
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. The new licence does not allow specific product recommendations but is designed to enable accountants and any financial advisers who may hold this licence to provide more strategic and low-cost forms of financial advice.
Mr Shorten also announced a streamlined transition period that will be available for accountants between 1 July 2013 and 1 July 2016.
Source: Minister for Financial Services press release No 036, 23 June 2012
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