Accountants Exemption and SMSF licencing
The financial press is full of stories about the ending of the accountants’ exemption in respect of Self Managed Superannuation Funds. Most clients probably will not have read these articles as they are not very stimulating.
Superannuation is only useful because of the tax advantages. If it was not for the tax savings the recommendation would be get out of super and its regulatory framework and do your investing solely in your name. Thus it was accountants that encouraged the growth of SMSFs as we are into saving tax for our clients.
Then came the regulators who wanted to regulate the finance industry specially the salesmen on commission who go under the misnomer of financial planners. Sadly the accounting professional bodies were seriously caught with their pants down. To placate the accountants an exemption was given for advice on setting up SMSFs which terminates on 1st July 2016.
There are two companies within Peter Vickers Business Group, Peter Vickers Insurance Brokers Pty Ltd which has a financial services licence which gives it authority to give advice and transact on general and life insurance and to give investment advice including on superannuation of any kind including SMSFs.
Peter Vickers Insurance Brokers has then made Peter Vickers & Associates Pty Ltd an authorised representative which is thus able to give investment advice including on superannuation and SMSFs.
Peter Vickers and Associates is a firm of Chartered Accountants and tax agents. In our case nothing changes and we have all the licences that are needed.
What is interesting is the word “advice”. The public servants think that this word means “tell the client what to do”. What we actually do is state “you are in the top tax rate of 49% and the tax rate for super is 15% or even 0% which one do you want to choose?” Funny, but no one has yet chosen 49%.