The exemption that allows accountants to give limited advice on the use of self managed superannuation funds (SMSF) without appropriate licensing and financial planning skills should be removed, according to the FPA.
Following its submission to the federal government’s SMSF review, FPA chief executive Jo-Anne Bloch said people who provide financial advice to anyone looking for a superannuation service should be licensed.
“They should have appropriate qualifications in financial planning and they should be able to offer their clients a comprehensive service,” Bloch said.
“It is essential that advice should meet the consistent requirements that operate within a uniform licensing regime to enable appropriate and effective consumer protections.”
The FPA strongly supports a level playing field whereby regulation and complaints mechanisms should apply regardless of the size of the superannuation fund, she said.
The SMSF sector is a significant and ever growing market with more than 320,000 funds in existence serving around 700,000 trustees and superannuation members, according to Bloch.
“SMSFs are a major success story in the provision of retirement planning and Australians have a growing appetite for them given their flexibility and control offered to the individual,” she said.
“The FPA believes that with a few targeted changes to regulation, the Federal Government can ensure that it is a robust and secure sector that will continue to thrive and assist many Australians successfully prepare for retirement.”
