From 1 July 2016, accountants (and other advisers) will need to hold a ‘limited’ AFS licence in order to be authorised by ASIC to provide SMSF advice and class of product advice about:
- superannuation products
- securities
- simple managed investment schemes as defined in the Corporations Regulations 2001
- general and life insurance, and
- basic deposit products.
ASIC is currently receiving applications and has issued guidance on matters that must be addressed in an application in order for a licence to be issued before 30 June 2016.
Importantly applicants need to have a responsible manager who satisfies the competencies requirements.
Applicants whose responsible managers are recognised accountants and who apply before 30 June 2016 will be able to take advantage of the transitional arrangements for entry into the AFS licensing regime. This means that recognised accountants will only need to satisfy the knowledge (i.e. training or qualifications) requirements in RG 105; they will not need to demonstrate experience.
Applicants who take advantage of the transitional arrangements for entry into the AFS licensing regime in this way will have to comply with an additional condition that states that within three years from the date on which the licence is granted, the licensee must demonstrate to ASIC, if requested in writing by ASIC, to the satisfaction of ASIC, that the licensee (or each recognised accountant) who has responsibility for the provision of financial services covered by the licence has:
•knowledge of the licensee’s obligations under the Corporations Act and the Corporations Regulations, and
•the competence to provide the financial services covered by the licence.
Applicants also need to satisfy compensation and dispute resolution arrangements, including membership of an external dispute resolution scheme.
