As we move into the new financial year, we would like to inform you of some significant legislative changes within the financial services industry, which may affect the way we do business with you in the future.
Changes to the Future of Financial Advice (FOFA) legislation
The FOFA reforms introduced by ASIC affect the way accountants are able to provide advice on Self-Managed Superannuation Funds (SMSFs). A SMSF is classified as a financial product, and unless an accountant is licensed, he or she will not be able to recommend that a client establish or wind-up (close) an interest in a SMSF from 1 July 2016.
Other services relating to SMSFs that will be prohibited, unless licensed, include:
General advice comparing SMSFs with other super structures
Setting an investment strategy
Property funding options within a SMSF (including Limited Recourse Borrowing Arrangements)
Arranging rollovers from existing funds
Concessional and Non-Concessional Contributions (including salary packaging strategies)
Transition to Retirement strategies
Retirement income streams
Receiving death benefits and nominating beneficiaries
Insurance needs analysis
C&J Authorised Representatives
We anticipated the expiry of the accountant’s exemption and have taken the necessary steps to become authorised representatives of Primestock Securities Ltd (Prime's) Australian Financial Services License (AFSL) No. 239180, who we have a partnership with for our existing wealth management division C&J Financial Services Pty Ltd.
With any change in legislation we also need to comply and commit to the ongoing rules. This will require us to provide a written ‘Statement of Advice’ for the strategies above.
There are strict regulations governing the administering of the ‘Statement of Advice’, and as such, we will need to implement and access new quality assurance procedures, complaint resolution procedures, professional indemnity etc. This will require a change in fee structure when these services are being delivered, however, we will be forthright and upfront in advising whether any such fees will be incurred.
Self-Managed Superannuation Fund (SMSF) Trustees
We consider the greatest impact of these changes will be when we are working together with clients who are trustees of a SMSF or those considering establishing a SMSF. We would like to assure our clients that we are committed to providing the best value proposition available by delivering quality service and advice at a competitive price.
These changes present a great opportunity to review your circumstances and obtain some personal advice that is specific to your needs. If you would like to arrange a time to meet with one of our licensed advisers, please click on the link below: