Making the most of financial products and strategies is, of course, something every Australian wants. And, while it’s widely agreed that superannuation is the most tax-effective program for retirement savings, it is notoriously complex.

This is especially true for owners of a Self-Managed Superannuation Fund (SMSF) which is a highly regulated market. Legislation is constantly changing, as is professional licensing regarding what financial advice or services professionals can or cannot legally provide.

Consequently, SMSF trustees need more professional support and advice than ever before. Meanwhile, accountants are exercising greater caution in this space. So, what advice or support can an accountant provide SMSF members, and where is an advisor required to step in?

Licensing & Experience Requirements

Prior to June 30, 2016, trustees commonly approached their accountant to either set up or assist with the management of their fund. Since the accountants’ exemption (Regulation 7.1.29A) was repealed on 1 July 2016, significant restrictions have been placed on what advice an accountant can provide to SMSF trustees.

Despite restrictions, accountants can still provide a wide range of general advice and services to trustees of an SMSF. They must, however, either personally hold an Australian Financial Services License (AFSL), or officially work under one to do so.

Meanwhile, financial advisers are required to have an AFSL license to practice and remain active to maintain their license and provide more specific advice to SMSF trustees.

Consequently, many SMSF trustees these days have an accountant and an adviser. If your accountant doesn’t have an AFSL, you may seek out an adviser who maximises the level of support received in the maintenance and execution of your SMSF.

Interestingly, even professionals often need support keeping up with regulatory changes. Hundreds of financial advisers and accounting firms partner with a firm like Intello to assist with compliance on SMSF client funds. Others partner with an accountant or adviser who can help mutual clients with more detailed or specific advice on tax, general accounting or SMSF investments.

What Accountants Can Do Regarding SMSFs

Accountants with an ASFL can provide a wide range of SMSF services and discuss a variety of SMSF topics - as long as they’re factual.

At a high level, these topics include:

• SMSF establishment and compliance. This includes establishing the SMSF, so long as specific financial advice is not provided at this point.
• Tax planning, including implications of holding or disposing of an SMSF investment.
• Options regarding investment structures and generic information, including super investment choices
• Concessions and caps, including the establishment of salary-sacrificing programs and information on the latest current concessional and non-concessional contributions that can maximise balances and tax concessions.
• Administrative structures, such as the differences and benefits of Corporate vs. individual trustees.

When an SMSF Adviser will be Required Regarding SMSFs

A licensed financial adviser, meanwhile, will be required if the SMSF trustee seeks more specific advice, tailored to suit financial goals and lifestyle factors.

That’s because superannuation is considered a financial product, rather than a financial service.

Key examples of what financial advisers can offer SMSF trustees include:

• Assessing the suitability of specific SMSF investments and recommendations tailored to the trustee, their fund goals, insurance factors and asset allocation in line with financial goals and lifestyle factors. An SMSF can help to navigate the intricate regulatory obligations that may lead to expensive compliance issues.
• Recommendations regarding loans within an SMSF.
• Customised contributions and pension commencement strategies. This includes contribution strategies that may hold short and long-term tax benefits, or align with future client needs.
• Recommending a binding death benefit nomination including opinions and advice on the ideal type of nomination and conditions for the trustee and beneficiaries.

Need to check up on a provider’s license?

You can always look up the status of an accountant or financial adviser on ASIC’s Professionals Registers online.‍

https://asic.gov.au/online-services/search-asic-s-registers/professional-registers/

Seeking Help with SMSF Compliance?

Intello are expert in SMSF accounting and compliance. They assist trustees as well as financial firms with SMSF customers on a full range of SMSF services, from establishment to regular lodgements.

For more, visit intello.com.au.