The Corporations Amendment Regulation 2013 (No 3) was registered on the Federal Register of Legislative Instruments Tue 4.6.2013. It amends the Corporations Regulations 2001 to create a new limited licensing regime from 1 July 2013 which allows accountants (and others) to provide a broader range of financial product advice than currently allowed for under the existing accountants’ exemption.
The amendments remove the current exemption which allows accountants to provide financial advice on self-managed superannuation funds (SMSFs) without an Australian Financial Services Licence (AFSL) from 1 July 2016 and provides alternative licensing arrangements from 1 July 2013. This will provide a 3-year transition period for accountants utilising the existing exemption to transition to the new regime.
Specifically, the amendments to the Corporations Regulations:
- remove the accountants’ licensing exemption in regulation 7.1.29A from 1 July 2016;
- provide that recognised accountants, partnerships or corporations who apply for an AFSL between 1 July 2013 and 30 June 2016 and only provide particular advice services do not have to demonstrate that they meet the experience required for the purposes of the organisational competence requirement in s 912A(1)(e) of the Corporations Act;
- provide that licensees who receive an AFSL under this streamlined process must within 3 years of being granted the licence, if requested in writing by ASIC, demonstrate to ASIC they have the requisite knowledge and the competence to provide the financial services covered by their licence; and
- provide that any licensee who only provides particular advice services and does not handle client-money can lodge an annual compliance certificate instead of an auditor’s report.
[LTN 106, 4/6/13]
Accountants applying for limited Financial Services Licence – ASIC releases information sheet
ASIC has released an information sheet to assist those intending to apply for a limited Australian financial services (AFS) licence. Information Sheet 179 Applying for a limited AFS licence (INFO 179) gives practical guidance to help applicants work through the licensing process.
INFO 179:
- provides guidance about ASIC’s licensing application process, and how it will apply to those seeking a limited AFS licence;
- outlines what information needs to be submitted in support of a limited AFS licence application; and
- gives information about which ASIC guidance will be most relevant for those seeking a limited AFS licence.
The current “accountants’ exemption” under reg 7.1.29A of the Corporations Regulations 2001 allows accountants to provide advice on the establishment of self-managed super funds (SMSFs), without the need for an AFS licence. As part of the FoFA reforms, this exemption will cease to apply on 1 July 2016. From 1 July 2013, accountants will be able to apply for the new limited AFS licence. While any person can apply for the new limited AFS licence, recognised accountants who apply between 1 July 2013 and 30 June 2016 can take advantage of transitional arrangements. Under the transitional arrangements, different organisational competence arrangements will apply where the responsible managers of the applicant are recognised accountants.
Source: ASIC release 13-140MR, 14 June 2013
[LTN 114, 17/6/13]