Copyright © 2017 ASAP Advice Pty Ltd. | Patent Pending | ABN 44 613 006 769

Note: This tool is based on A.S.A.P.'s Guide for Unlicensed Accountants Version 1.0 Jan 2017. Accountants referring to this tool should not rely on the contents and should obtain their own, independent, legal advice. Users of the tool will also receive our monthly newsletter containing updates and tips for using A.S.A.P. (you can unscubscribe at any point).

ACCOUNTANTS CAN:

• provide factual information on the different options available so long as this is objectively ascertainable
• set out options and explain the tax benefits of each option (if done carefully!)
• answer the client's questions about how the tax works for different decisions
• provide compliance advice on super & SMSFs
• explain SG obligations to employers
• provide broad asset allocation advice

ACCOUNTANTS CAN'T:

• endorse any decision the client makes, or suggest specific scenarios that the client would regard as you providing an opinion with the intention of influencing them in a financial product decision
• recommend particular financial products or classes of financial products
• present factual information in a manner that may reasonably be regarded as intending to influence the client’s decision about a financial product.
• recommend or endorse the establishment or wind up of an SMSF
• receive a commission or benefit if a transaction proceeds.

RECOMMENDED:

• provide your client with independent materials that support what you have told them e.g. links to government websites
• present facts about more than one relevant course of action
• do not give an opinion or recommendation that would influence the client's financial product decision
• issue disclaimers including those mentioned in A.S.A.P.'s guide below

References:
Reg 7.1.29(3)(f)
Reg 7.1.29(4)
Reg 7.1.29(5)
A.S.A.P. Guide 1 and Guide 2 for unlicensed accountants

ACCOUNTANTS CAN:

• give facts, explain rules
• explain the investment requirements/restrictions of SIS Act (e.g. in-house assets).
• explain SG obligations to employers
• set up the SMSF using a trust deed prepared by a lawyer on the instruction from a client (after they have received licensed advice)
• recommend a corporate or individual trustee
• provide a form for the client to document their own SMSF investment strategy
• explain the effect of different types of death benefit nominations

ACCOUNTANTS CAN'T:

• recommend or endorse a client's decision to establish an SMSF
• recommend a client should NOT establish an SMSF
• recommend or endorse a rollover
• make a representation or statement of opinion which is intended to influence or endorse the client’s decision

RECOMMENDED:

• don't get involved in establishing an SMSF (even under client instruction) unless the client has a Statement of Advice from a licensed adviser*
• for confident, self directed clients, use a digital advice service
• for less confident clients, refer them to a human financial adviser

* Without a written Statement of Advice, and evidence that the client was able to choose from a range of advice level options, it's difficult to prove to regulators/courts that the client didn't rely on your involvement as advice or endorsement of their decisions. With digital advice costing as little as $250+GST - there is no reason to gamble.

References:
RG 36.23
Reg 7.1.29
A.S.A.P. Guide 1 and Guide 2 for unlicensed accountants

ACCOUNTANTS CAN:

• give facts
• explain rules and characteristics
• warn the client that insurance will be lost on exiting the fund (provided that only factual information is given)
• complete some administrative tasks on instruction from the client after receiving advice e.g. completing a rollover form

ACCOUNTANTS CAN'T:

• recommend or endorse a rollover
• advise on performance or recommend one structure over another
• make a representation or statements of opinion which is intended to influence the client's decision
• apply for or cancel insurance on behalf of the client

RECOMMENDED:

• never get involved in a rollover (decision or paperwork) from a client's existing super fund unless there is a Statement of Advice on file
• never get involved in setting up a SMSF which relies on rollvers to achieve the required balance, unless there is a Statement of Advice on file

References:
Reg 7.1.29(5)(a)
Reg 7.1.29(3)(g)
RG 36.23
A.S.A.P. Guide 1 and Guide 2 for unlicensed accountants

ACCOUNTANTS CAN:

• provide factual information such as relevant contribution caps and preservation rules
• discuss the tax implications of super contributions
• explain the different tax treatment of salary vs super contributions (when giving tax advice)
• explain superannuation preservation rules

ACCOUNTANTS CAN'T:

• recommend that the client make or cease superannuation contributions or change their contribution levels
• advise on optimal investment strategies

RECOMMENDATION:

• do not get involved in the paperwork to implement contributions unless there is a Statement of Advice on file
• for confident, self directed clients, use a digital advice service
• for less confident clients, refer to a human financial adviser
• provde your client with references to external resources they can read after the meeting. e.g. links to ASIC's moneysmart website

References:
Reg 7.1.29(5)(a)

ACCOUNTANTS CAN:

• provide information about eligibility to move into pension phase
• advise on tax implications
• explain superannuation rules and advise on strategies to comply with those rules
• provide information about maximum and minimum pension levels and scenarios that produce the same take-home pay
• administratively set up a pension (after the client has received a Statement of Advice)

ACCOUNTANTS CAN'T:

• recommend or endorse a particular superannuation product for a client's pension
• recommend the acquisition, variation or disposal of an interest in super that goes beyond tax and operational aspects of the product
• recommend a client take a pension or other income stream over a lump sum (or vice versa)
  
  

RECOMMENDED:

• don't get involved in implementing a pension unless there is a written Statement of Advice on file*
• for confident, self directed clients, use a digital advice platform
• for less confident clients, refer to a human adviser

* Without a written Statement of Advice, and evidence that the client was able to choose from a range of advice level options, it's difficult to prove to regulators/courts that the client didn't rely on your involvement as advice or endorsement of their decisions. With digital advice costing as little as $250+GST - there is no reason to gamble.

References:
Reg 7.1.29(4)
Reg 7.1.29(5)

ACCOUNTANTS CAN:

• provide factual info detailing the tax of lump sums and pensions (without recommending one, but seek instructions from client about which one they desire)

ACCOUNTANTS CAN'T:

• recommend a client take a pension or other income stream over a lump sum (or vice versa)
  
  
  References:
  

  Reg 7.1.29(5)(a)
  Reg 7.1.29(4)
  Reg 7.1.29(3)(g)

ACCOUNTANTS CAN:

• provide a form for the client to document their own SMSF investment strategy
• discuss the factual characteristics of different asset classes (e.g. volatility of shares v cash)
• give broad asset allocation advice using a fixed set of asset classes* without recommending particular financial products or classes of financial products

ACCOUNTANTS CAN'T:

• make a recommendation or statement of opinion that relates to specific financial product or class of financial products (e.g. Healthscope Limited or health care shares)
• recommend a LRBA
  
  
  * Giving advice about a client's allocation of funds across the following specific asset class categories is an exempt service under Reg 7.1.33A: shares, debentures, government securities, deposit products, managed investment products, investment life insurance products and superannuation products. No recommendation or statement of opinion can be made about specific financial products or other classes of financial products (e.g. 'overseas shares')
  
  
  References:
  

  Reg 7.1.33A

ACCOUNTANTS CAN:

• explain the requirements/ restrictions of the SIS Act, and broad asset allocation issues
• provide tax planning advice for a fee including CGT advice on switching

ACCOUNTANTS CAN'T:

• advise on securities or other financial product or play a key role in arranging for the client to deal in financial products
  
  NOTE: Accountants should avoid receiving benefits other than the fee for service.
  
  
  References:
  

  Reg 7.1.29(4)
  Reg 7.1.29(5)
  s.766B(5)(c)

There is a lot that an accountant can do for their SMSF client without holding an AFSL. BUT, to assist with implementing SMSF transactions leaves unlicensed accountants legally exposed.

Accountants can provide details of a licensed adviser (such as A.S.A.P.) where the client can obtain advice from as little as $250+GST. Accountants can also assist the client in setting the scope of that advice, for example by using A.S.A.P.'s online scoping tool which helps to validate each clients advice needs.

Note: Accountants can't make a referral in a fashion that could reasonably be regarded as intending to influence the client in making a decision in relation to a financial product or class of financial product. Please read A.S.A.P.'s guide for further information on this and ASIC's complex 'arranging' rules.

Click next for further information or to launch the A.S.A.P. platform.

References:

RG 36.34(f)
Reg 7.6.01
Reg 7.1.31
ASAP Guide 1 and Guide 2 for unlicensed accountants