Presentation slides from webinar held on 30 January 2013 on the future of SMSF licensing. Presented by Aaron Dunn of The SMSF Academy, along with guest panelists, Liz Westover, ICAA and Nick Hilton, MLC. Discussion includes: > draft regulations for replacement of accountant's exemption (Reg. 7.1.29A) > Advice allowed under a restricted license > Timeline for introduction of licensing regime > Licensing options including restricted AFSL & becoming an authorised representative > Ongoing requirements including training > Opportunities in providing advice

1. Webinar:
The future of
SMSF licensing

2. POLL:
How many people are viewing this webinar
with you today?

4. General Advice Warning
This presentation provides general advice only. No direct or implicit recommendations are given in this
presentation. This means that the general advice provided has not been prepared taking into account
any individual‟s financial circumstances (i.e. investment objectives, financial situation and particular
investment needs).
The SMSF Academy Pty Ltd believes that the information in this presentation is correct at the time of
compilation but does not warrant the accuracy of that information. Save for statutory liability which
cannot be excluded, The SMSF Academy disclaims all responsibility for any loss or damage which any
person may suffer from reliance on this information or any opinion, conclusion or recommendation in
this presentation whether the loss or damage is caused by any fault or negligence on the part of
presenter or otherwise.

5. Introduction of Speakers
HOST GUEST PANELIST GUEST PANELIST
Aaron Dunn Liz Westover Nick Hilton
Managing Head of Superannuation, National Manager, MLC
Director, The SMSF Institute of Chartered Accountant Solutions
Academy Accountants (ICAA)

6. WHERE ARE
WE TODAY?

7. Legislative landscape today
• Taxation advice s.766B(5)(c) & Reg.7.1.29(4)
• Traditional accounting activities Reg.7.1.29
– including Reg. 7.1.29A
• Broad asset allocation advice Reg.7.1.33A
• Referrals Reg.7.6.01(1)(e)

8. THE IMPACT OF
SMSF LICENSING

9. What advice will be allowed under a restricted
licence?
• Financial product advice on SMSFs
– Establishment, super switching to SMSF, contributions, pensions
• Class of product advice
– Superannuation products
NEED TO
– Securities MEET ‘BEST
– Simple managed investment schemes INTEREST’
– General insurance products DUTY
– Life risk insurance products
– Basic deposit products

10. Timeline for replacement of Accountant’s
licensing exemption
Today
Reg. 7.1.29A – current
1 July 2013
exemption for advice on
establishment & Can apply from this date
1 July 2016
winding up a SMSF by for RAFSL
recognise accountant Reg. 7.1.29A to be
1 July 2019
Exempt licensee - Reg.
7.6.01BA (Corp. Act) repealed
Exempt licensee
Advice on SMSFs & class 30 June 2016 is last day regulation repealed
of product advice to become an exempt
licensee Full obligations apply to
Must comply with best all licensees, whether
interest duty restricted of full AFSL
holders

11. TODAY 1 JULY 2013 1 JULY 2019
AFSL holders AFSL holders AFSL holders
Section 912A Section 912A Section 912A
Corporations Act Corporations Act Corporations Act
2001 2001 6 year “window” to 2001
demonstrate
competency to be
AFSL holder
Exempt licensee Holds money Does not hold money
must hold for 3 Audit required Compliance certificate
years required

12. Exempt licensee arrangement
• Who can apply for an exempt licensee?
– Accountants who hold a Public Practice Certificate from
ICAA, CPA or IPA (may include SPAA PPC)
– Someone who has demonstrated competency to hold a license

13. THINKING ABOUT
YOUR OPTIONS FOR
SMSF LICENSING

14. Poll
When are you thinking about becoming
licensed to provide SMSF advice?

15. Options in providing SMSF advice
• Self-licensed
– Restricted AFSL
– Full AFSL
• Authorised Representative
– Basic authority
– Strategic authority
– Comprehensive authority

16. Becoming an authorised representative
• What does it mean to become an AR?
• What does the AFSL holder impose on the AR?
• Cost of becoming an AR?
– What‟s included within the fee?

17. Holding your own license
• What is the cost of holding your own RAFSL?
– Registration costs
– External Dispute Resolution Scheme (e.g. FOS)
– Professional Indemnity
– Compliance requirements
– Ongoing training
• Full AFSL
– All of the above plus annual audit

18. Ongoing requirements
• What are the „moving parts‟ to providing advice and
where are you getting that support from?
– i.e. Technical support, Para-planning, other compliance
• Support of your AFSL holder vs. Restricted AFSL
– Is your accounting body providing support for its members?
– What is a licensee providing its authorised representatives?

19. Training requirements
• Need to meet relevant training requirements prescribed
in RG146
– Meet training requirements to apply for a license (RG105)
• Ensures appropriate skills and knowledge to provide
advice under new authorisations
• ASIC Training register currently under review
– Awaiting final policy position on CP153 and FoFA reforms

20. The opportunity
• New revenue streams / Moving away from
compliance-focused accounting activities
– i.e. individual tax returns
• Growth of SMSF sector Why be
• Clients are „demanding‟ it – supported ready from 1
within industry research July 2013?
– SPAA/Russell „Intimate with SMSFs‟ reports
• More holistic offering to clients

21. Poll
Which path will you take to providing SMSF
advice from 1 July 2013 ?

22. INTRODUCING SMSF101
The first truly online solution for SMSF education

23. No. Module
A RG146 Knowledge Refresher
B Adviser Skills
1 Introducing Super & SMSFs
2 Establishing an SMSF
3 Introducing Estate Planning
4 SMSF contributions
5 SMSF investment rules
6 SMSF investment strategies
7 SMSF taxation
8 Paying SMSF benefits
9 Tax effective SMSF benefit and estate planning
strategies

24. Register your
interest and
view the sample
module
www.smsf101.com.au

25. Next webinar
The changing face of SMSFs
• Quarterly update on the latest technical & regulatory
issues impacting self-managed super funds
– previously SMSF quarterly wrap
• SMSF Academy Members – free
• Non-members: $99 (incl. GST)
Tuesday, 26 February
11am AEDST

26. Questions
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on our LinkedIn group Here‟s where you can
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The SMSF
Academy