According to data, only 15 per cent of accountants that provide advice on SMSF are authorised to provide investment advice while only 13 per cent are RG146 compliant.
The Investment Trends data found that out of the total number of accountants in public practice and advising SMSFs (33,000), only 5,000 are authorised representatives able to provide investment advice. Furthermore, only 4,500 are RG146 compliant while 23,5000 are not RG146 compliant.
The survey follows a recent AccountantsDaily survey that found that less than 50 per cent of accountants have begun preparing for the end of the accountants’ exemption and out of the 103 accountants that responded to the question, only 46 said they had begun preparing for the new licensing regime.
Recep Peker Investment Trends senior analyst said that, “it was the first time anyone had made a serious effort to count the level of accountants in public practice offering SMSF advice and was part of research conducted in conjunction with OneVue to discover the use of SMSF administration services by accountants and SMSF trustees.”
The senior analyst also confirming that, “of the 530,000 SMSFs currently in operation 75,000 were administered by financial planners and 265,000 were administered by accountants and 95,000 were administered by an SMSF administration service.”
In July Keddie Waller, policy adviser financial planning at CPA Australia warned members to, “begin the licencing process now or miss out on transitional allowances that will help most accountants obtain the limited licence.”
Waller also warning that, “the vast majority of CPA members do not have the required experience and as such will have to become an authorised representative of another licensee to continue to provide advice after the 2016 deadline.” Waller reinforcing the message to members that if they know they will need to be licensed, “start your training”, adding that, “If you leave it to the last 12 months to start your training it’s just going to be too late.”