Tumultuous year ahead

Accountants and financial planners face big challenges as reforms to the self-managed superannuation funds industry are formulated. Report: John Wasiliev

The sum of accountants, auditors, administrators, financial planners, lawyers, stockbrokers and other advisers is around 27,000 financial services that involved in the $400 billion-plus self-managed super sector.

Typically, all of them are facing a hard year due to big reforms proposed in various government reports. The main theme of the reforms is the imposition of higher standards and greater competency on do-it-yourself service providers, although there are also changes that yet to come.

Accountants who have worked as administrators, general advisers and auditor of the 425,000 funds will be mostly affected. The effect of accountants, who don't seek separate qualifications will be turned into bookkeepers. Accountants also need a full Australian financial services license to be able to give advice on the establishment of a DIY (Do-It-Yourself) fund. Nonetheless, there is still uncertainty whether the accountants need a license to issues such as basic administration, valuation and winding up funds. The major solution for accountant to stay involve in establishing funds is doing some training  and aligning themselves to an AFSL license holder.

DIY fund auditors  also face a whole set of new rules that will require not only greater competence but also a much higher level of independence. Other in spotlight are financial planners who face the prospect of requiring specialist skills to discuss basic super strategies, such as salary sacrifice, with clients under more restrictive tax advice requirements.