As of 1 July 2016 all accountants offering Self-Managed Superannuation Fund (SMSF) advice are required to be licenced under the Future of Financial Advice reforms introduced by the Federal Government.
Up until now accountants have received an exemption to allow them to provide advice on establishing a SMSF and any contribution or pension strategies involved with SMSF.
Accountants have the options of becoming either an authorised representative of an Australian Financial Services Licensee, or obtain their own limited or full AFS licence.
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Two of Paisley Robertson’s principals Bernadette West and Andrew Morrison have the required RG146 accreditation and are limited authorised representatives of Merit Wealth Pty Ltd (AFSL 409361), which enable them to provide strategic advice in relation to SMSF.
Andrew Morrison believes ending of the exemption is good for the industry and people should make sure they get licenced advice.
“It ensures advisers are up-to-date with their technical knowledge and the latest requirements in the financial industry”, said Mr Morrison.
The SMSF industry is growing rapidly with now more than 500,000 SMSF established throughout Australia, which holds a third of the nation’s superannuation money.
“SMSF are not for everyone. But for those who want to control their superannuation investments or own property they can do so via an SMSF,” Mr Morrison said.
“But as with any investment people need to get good advice given by licenced advisors.”
If you want to manage your own superannuation, there are many factors you need to consider, according to the Australian Taxation Office.
To work out whether an SMSF is right for you, it’s important you take the following six steps:
- Consider your options and seek professional advice.
- Ensure you have sufficient assets, time and skills to manage your own fund.
- Follow the super and tax laws and understand the risks.
- Tailor your trust deed and investment strategy to suit the members of your fund.
- Be sure you can meet your record keeping and reporting obligations.
- Make sure you understand your annual auditing obligations.