August 2016 Edition

In this edition:

Welcome

Accountants now licensed to give SMSF advice

ATO small business benchmarks updated

ATO focus on rental properties

Investment timing versus strategy

What has changed?

Regulation 7.1.29A of the Corporations Regulations 2001 previously permitted a Goodwin Chivas & Co (GCC) Accountant to recommend a client to establish or wind up an interest in a SMSF without being licensed under the Australian Financial Services (AFS) licensing regime. That accountants' exemption was repealed on 1 July 2016. Now, if a GCC Accountant recommends a client establish or wind up an SMSF without being appropriately licensed they will be in breach of the law and could be liable for significant penalties. This includes the provision of related advice, such as a recommendation to commence a pension or make additional superannuation contributions.

What were our options?

Our options included:

1. Become licensed - apply for and obtain your own limited (or full) AFS licence, noting you will need to meet the experience requirements.
2. Become authorised - become an authorised representative of another entity's AFS licence.
3. Refer clients - refer clients who require financial product advice to an appropriately licensed entity or individual (this can include joint venture arrangements).

Our decision…

GCC in conjunction with GCC Financial Planning decided to apply to ASIC for our own AFS License which has now been received. All the Partners and Managers at Goodwin Chivas & Co recently undertook an intense training program to become RG 146 compliant.  RG146 Compliance has been designed to meet the training requirements set by ASIC in RG146 to provide financial product advice. We are also now licensed under the new GCC AFS Licence to provide the necessary advice required by law.

What this means for you

When it comes to SMSF administration, not much will change at all – our services will still be delivered in the most efficient and personal way possible.

Areas where you will notice change will be around the strategic advice services we provide. In general they will become a lot more structured and systematised.

Some examples of this systematisation may include:

• Additional disclaimers on emails from the GCC Partners & Managers;
• More formal 'quotes' where you sign (electronically) before we provide you with written advice;
• Increased levels of written advice that will provide higher value and better outcomes to you;
• We will ask you specific 'yes / no' questions to determine whether you actually require personalised advice or just general information;
• Signed disclaimers when you engage us for certain implementation only services that don't include advice

We guarantee that when we provide you advice you will get value. We have a fantastic team who are highly qualified, experienced and passionate when it comes to SMSF advice.

We look forward to discussing the above changes in greater detail with you. Should you have any immediate queries please contact your GCC Partner or Manager.

For assistance or more information contact the Goodwin Chivas team.