Accountants will need up to two years to fully comply with new regulations once the government makes an announcement on its planned removal of the accountants’ exemption, an accounting industry body spokesman said.
“Without doubt, the primary concern that accountants in private practice have is the accountants’ exemption,” Institute of Chartered Accountants of Australia head of financial advisory services Hugh Elvy said.
The changes are expected to require accountants to move into an Australian financial services licence regime, and Elvy said they would need an extensive transition period to do so.
“I would suggest a transition period of at least two years would be needed,” he said.
The exemption allows accountants to offer self-managed superannuation fund clients limited financial advice without a licence. Although it is widely believed the exemption will be removed, the industry has been awaiting details of the framework that would replace it for nearly a year.
Financial Services Minister Bill Shorten told an industry conference in mid-February that the government would have its answer on the exemption within two weeks.
However, earlier this week a spokesman for Shorten’s office said: “The minister has indicated an announcement on the accountants’ exemption will be forthcoming.”
Elvy said the change was deeply significant for accountants in public practice.
“It’s the most significant change in 10 or 15 years so in some ways, the delay is good,” he said.
He said the ICAA would help accountants develop appropriate business models but it was premature to start doing so.
“It’s difficult to predict or plan for it without knowing exactly what the framework is going to look like,” Elvy said.
In December, CPA Australia urged its members to await the government’s final policy position before taking any action.
Parliamentary Secretary to the Treasury Bernie Ripoll said Treasury was working on the matter, which he said would be positive for the industry.
“What it acknowledges is that, across the board, if you’re going to provide financial advice and services, you need to be licensed to do that,” Ripoll told InvestorDaily.
“I don’t think anyone argues that.”
