Agenda. Accountants exemption and the licensing future. Where are you up to and where should you be? 19/09/ nd September 2014

Transcription

1 Accountants exemption and the licensing future. Where are you up to and where should you be? 22 nd September 2014 Presented by: Hugh Elvy Head of Financial Advisory Services Liz Westover FCA Head of Superannuation 1 Agenda Overview Where are we at? Decision Time!! Options Training & Education (RG 146) Authorised representative of a licensee considerations AFSL Providers Applying for Limited licence Limited licence and the requirements Professional indemnity insurance Important Tips Tools & Resources What s next? 2 1

2 Overview FoFA reforms and Amendments continue Accountants exemption is to be removed from 1 July 2016 To provide advice on the establishment or wind up of a SMSF you need to operate under the ASIC AFS Licensing regime A new form of AFSL developed - limited licence The limited licence authorisations: SMSF class of product advice insurance, simple managed funds, superannuation, securities Note: apart from SMSF it doesn t allow specific financial i product advice ASIC strategic focus financial advisers, SMSFs and responsible lending in credit. Clients have growing needs 3 Where are we at? National roadshow conducted last year Extensive resources and guidance developed for members Based on all limited licence authorisations Fortnightly communication provided through In the Know - Accountants Exemption- facts and information series Updates provided in Superannuation bulletin Materials and Updates on website RG 146 Training solution through Kaplan Professional PI Brokers have provided policies 4 2

3 Decision time 21 months of the 36 month transition period remain A few firms have made decision to get licensed and some to join AFS Licensee groups ASIC has received 70 applications, approved 35 Myths & misconceptions Options Not get licensed eg Specialise in services that are not licensed and refer SMSF advice Apply for limited AFS licence Operate under another entity s licence (authorised representative) Employ a financial planner/ Set up a Joint Venture arrangement Tip Refer to: Financial Advice and Regulations: Guidance for the accounting profession 5 Training and Education Irrespective of your decision there will be training requirements Need to enroll and commence training ASAP Partnered with Kaplan Professional Kaplan Profession Diploma of Financial Planning Details on website/ FAQs Self Study/ flexible 3-4 subjects (depending on previous training completed) Financial Planning Insurance and risk Protection Superannuation & SMSFs Managed Investments & Securities 6 3

4 Training and Education What are the requirements and what applies? ASIC RG 146 required when providing advice ASIC RG 105 Responsible Manager requirements to demonstrate knowledge (Only a requirement when applying for a limited licence) Key issues Have you completed training previously? Currency is a consideration Have you completed a qualification? Who in the firm needs to operate under the licence? Who needs to complete training? Where does the CA SMSF specialisation fit? 7 Authorised representative of a licensee considerations Key Considerations Apart from the practical issues, what is the licensee fit like? (Licensee experience with accountants.) Cheap doesn t mean better, nor does expensive Importance and value of independence Questions to ask Who owns the client? Licence conditions? Support for APESB standards Training provided? CPE? Costs include? Compliance requirements? Licensee expectations Tips Refer to Considerations when selecting an Australian Financial Services (AFS) Licensee. Speak to other CAs who operate under the AFSLs you considering 8 4

5 AFS Licensee solutions Information overload There are a wide range of AFS licensee providers that cost from less than $5,000 up to over $20,000 depending on the services. Most of the financial institutions have an offering. Non-aligned AFS licensee offerings Boutique No frills 9 Applying for a Limited licence In regular contact with ASIC Application is not just a registration but a due diligence process Provide more detail rather less Make sure the core proofs are provided on application inc. Business description Financial Resources statement Statement of personal information Before applying check with your broker/ insurer in regards to PI Make sure you have completed required RG 146 training 10 5

6 Limited Licence and the requirements The broad requirements necessary to apply for the limited licence: General obligations i (compliance, risk, people, resources) Training requirements (RG 105 and RG 146) Professional indemnity insurance Internal and external dispute resolution Financial requirements Refer to the DIY AFS Licence kit - Sample licence - Compliance manual - Registers 11 Professional Indemnity Limited liability capping scheme now includes the services provided under the limited licence. Chartered Accountants ANZ continues to liaise with PI brokers/ insurers Note: The following are not recommendations. 3 brokers have arranged policies for members AON Risk Solutions Gallagher Australia Marsh Pty Ltd 12 6

7 Important Tips Prepare documentation thoroughly before making an application to ASIC Commons mistakes Incomplete/ deficient RG 146 training Incomplete/ deficient PI or PI in the wrong name EDRs in wrong name Evidence of holding a CPP Materially deficient information or documentation Application in wrong name 13 Tools & Resources Information Guide: Accountants exemption reform Financial Advice & Regulation: Guidance for the accounting profession Considerations when selecting an Australian financial Services licensee Available to CPP holders all authorisations Comprehensive DIY AFS licensing kit (inc. Compliance Manual & registers) Walk through the application process Example completed application form List of all documentation required Provide templates for compliance procedures Limited Australian Financial Services: Your Obligations Provide clear understanding of what advice you can and cannot provide under the new licence Templates Disclosure documents e.g. FSG/ SoA 14 7

8 Tools & Resources 15 Click to edit Master title style 16 8

9 What s next? Key decision How will you operate post 1 July 2016? Willyoubeinorout? in or out? If in start training ASAP Refer to the resources on the website Speak with other members Read In the Know newsletter and Super Bulletin Questions & Queries: financial.services@charteredaccountantsanz.com 17 Questions? 9

10 More Online Training opportunities Find more LiveOne online training opportunities at charteredaccountants.com.au/liveone Subscribe to the elearning Update to receive updates on LiveOne and elearning opportunities You can now track, report and register for LiveOne events to support your career pathway by downloading the FREE CPDconnect App from either itunes or Google Play. Disclaimer This presentation represents the opinion of the author(s) and not necessarily those of the Institute of Chartered Accountants Australia (the Institute) or its members. The contents are for general information only. They are not intended as professional advice - for that you should consult a Chartered Accountant or other suitably qualified professional. The Institute expressly disclaims all liability for any loss or damage arising from reliance upon any information in these papers. Information presented in this session is correct at the time of recording. 10

11 Thank You 11