MLC is securing a foothold in the accounting space by setting up a dedicated team to help accountants work out business strategies and get the right licensing.
National Australia Bank’s wholly-owned wealth management arm has set up the new business, an accountant solutions team, and Accountants’ Advice Academy, in response to expected industry changes stemming from the Future of Financial Advice (FOFA) reforms.
Although the FOFA reform is months away from advancing through Parliament, it is expected to include the abolition of the accountants’ exemption.
The exemption allows accountants to provide financial advice to self-managed superannuation fund (SMSF) clients. It is expected to give way to a licensing regime, although the federal government has not yet announced details.
MLC national manager of accountant solutions Nick Hilton said Accountants’ Advice Academy would help accountants work out a strategy, and its accountant solutions team would help them get the right licensing.
“Clearly, we think there’s a place for advice in relation to self-managed super funds,” Hilton said.
“Part of these FOFA reforms are expecting to make that a bit more difficult for accountants and we want to help solve that, but we do generate revenue off the back of our licensing solutions, so that’s our business growth proposition as well.”
He said the accounting industry operations were part of MLC’s advice and marketing team.
“It’s also part of the business development. It won’t necessarily be a revenue-generating team, but it will be a team charged with growing the size of MLC’s licensee businesses,” he said.
The team was made up of seven people, most of whom had qualifications in accounting as well wealth management, he said.
Hilton, who joined MLC six years ago, has spent six years in accounting practices and about eight years in wealth management.
In November last year, MLC and Axa’s financial advice network, which is rebranding as Charter, teamed with the Institute of Public Accountants (IPA) to be the IPA’s recommended licensee choices.
Hilton said most accountants obtained a specialist authority licence to provide SMSF advice or entered into a joint venture or referral relationship with a planner.
However, CPA Australia’s financial planning policy adviser Keddie Waller said the service could be premature because the government had not yet announced its expected FOFA conditions for the industry.
“Our message to our members is: soak up all the information you can, talk to as many people as you can, including us, but don’t make any key decisions until the government announces its policy reforms,” Waller said.
