the future of smsf licensing webinar

Webinar:

The future of SMSF licensing

POLL:

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Housekeeping

• Attendees are muted for the session• Presentation slides can be accessed from

URL link in chat box• You can type questions to the presenters

from your screen• This session is being recorded and will be

made available after the session

General Advice Warning

This presentation provides general advice only. No direct or implicit recommendations are given in this presentation. This means that the general advice provided has not been prepared taking into account any individual’s financial circumstances (i.e. investment objectives, financial situation and particular investment needs).

The SMSF Academy Pty Ltd believes that the information in this presentation is correct at the time of compilation but does not warrant the accuracy of that information. Save for statutory liability which cannot be excluded, The SMSF Academy disclaims all responsibility for any loss or damage which any person may suffer from reliance on this information or any opinion, conclusion or recommendation in this presentation whether the loss or damage is caused by any fault or negligence on the part of presenter or otherwise.

Introduction of Speakers

HOST

Aaron DunnManaging Director, The SMSF Academy

GUEST PANELIST

Liz WestoverHead of Superannuation, Institute of Chartered Accountants (ICAA)

GUEST PANELIST

Nick HiltonNational Manager, MLC Accountant Solutions

WHERE ARE WE TODAY?

• Taxation advice s.766B(5)(c) & Reg.7.1.29(4)• Traditional accounting activities Reg.7.1.29

– including Reg. 7.1.29A

• Broad asset allocation advice Reg.7.1.33A• Referrals Reg.7.6.01(1)(e)

Legislative landscape today

THE IMPACT OF

SMSF LICENSING

• Financial product advice on SMSFs– Establishment, super switching to SMSF, contributions, pensions

• Class of product advice– Superannuation products– Securities– Simple managed investment schemes– General insurance products– Life risk insurance products– Basic deposit products

What advice will be allowed under a restricted licence?

NEED TO MEET ‘BEST INTEREST’

DUTY

Today

Reg. 7.1.29A – current exemption for advice on establishment & winding up a SMSF by recognise accountant

1 July 2013

Can apply from this date for RAFSL Exempt licensee - Reg. 7.6.01BA (Corp. Act)Advice on SMSFs & class of product adviceMust comply with best interest duty

1 July 2016

Reg. 7.1.29A to be repealed30 June 2016 is last day to become an exempt licensee

1 July 2019

Exempt licensee regulation repealedFull obligations apply to all licensees, whether restricted of full AFSL holders

Timeline for replacement of Accountant’s licensing exemption

AFSL holdersSection 912A

Corporations Act 2001

TODAY 1 JULY 2013 1 JULY 2019

6 year “window” to demonstrate

competency to be AFSL holder

Exempt licensee must hold for 3

years



Holds moneyAudit required

Does not hold moneyCompliance certificate required



• Who can apply for an exempt licensee?– Accountants who hold a Public Practice Certificate from ICAA,

CPA or IPA (may include SPAA PPC)– Someone who has demonstrated competency to hold a license

Exempt licensee arrangement

THINKING ABOUT YOUR OPTIONS FOR SMSF LICENSING

When are you thinking about becoming licensed to provide SMSF advice?

Poll

• Self-licensed– Restricted AFSL– Full AFSL

• Authorised Representative– Basic authority– Strategic authority– Comprehensive authority

Options in providing SMSF advice

• What does it mean to become an AR?• What does the AFSL holder impose on the AR?• Cost of becoming an AR?

– What’s included within the fee?

Becoming an authorised representative

• What is the cost of holding your own RAFSL?– Registration costs– External Dispute Resolution Scheme (e.g. FOS)– Professional Indemnity– Compliance requirements– Ongoing training

• Full AFSL– All of the above plus annual audit

Holding your own license

• What are the ‘moving parts’ to providing advice and where are you getting that support from?– i.e. Technical support, Para-planning, other compliance

• Support of your AFSL holder vs. Restricted AFSL– Is your accounting body providing support for its members?– What is a licensee providing its authorised representatives?

Ongoing requirements

• Need to meet relevant training requirements prescribed in RG146– Meet training requirements to apply for a license (RG105)

• Ensures appropriate skills and knowledge to provide advice under new authorisations

• ASIC Training register currently under review – Awaiting final policy position on CP153 and FoFA reforms

Training requirements

• New revenue streams / Moving away from compliance-focused accounting activities– i.e. individual tax returns

• Growth of SMSF sector• Clients are ‘demanding’ it – supported

within industry research – SPAA/Russell ‘Intimate with SMSFs’ reports

• More holistic offering to clients

The opportunity

Why be ready from 1 July 2013?

Which path will you take to providing SMSF advice from 1 July 2013 ?

Poll

INTRODUCING SMSF101The first truly online solution for SMSF education

No. Module

A RG146 Knowledge Refresher

B Adviser Skills

1 Introducing Super & SMSFs

2 Establishing an SMSF

3 Introducing Estate Planning

4 SMSF contributions

5 SMSF investment rules

6 SMSF investment strategies

7 SMSF taxation

8 Paying SMSF benefits

9 Tax effective SMSF benefit and estate planning strategies

Register your interest and

view the sample module

www.smsf101.com.au

The changing face of SMSFs• Quarterly update on the latest technical & regulatory

issues impacting self-managed super funds – previously SMSF quarterly wrap

• SMSF Academy Members – free• Non-members: $99 (incl. GST)

Next webinar

Tuesday, 26 February11am AEDST

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