With new licensing options emerging to assist accountants with the removal of the accountants’ exemption in July 2016, more accountants will be providing strategic advice to their clients and muscling in on services that have traditionally been offered by financial planners – especially in the superannuation arena.
Accountants will tell you that while they don’t want to give product advice, they are degree qualified, many with post graduate qualifications and that providing strategic advice is just an extension of what they already do as their client’s most trusted adviser.
This is a wake-up call to planners as the new rules, combined with bad press and numerous scandals clouding their name, could see the space very well erupt into a battleground with more casualties on the planner side as clients retreat to their accountants.
However, it doesn’t have to be a battleground as licensing presents opportunities for both sides. As most accountants are not interested in offering product advice, they will still need to have referral arrangements in place with financial planners. And both sides may view this as in the best interests of the client. The key to doing this successfully will be to partner with complimentary, not competing businesses.
For both planners and accountants, this is the time take stock and clearly think about the services you want to offer. For accountants, think about whether you want to offer superannuation advice (such as contributions advice and recommendations on TTR strategies) to non-SMSF clients for example? Do you want to advise on other issues like savings plans and margin lending?
For planners, are you prepared to offer investment and/or risk insurance advice only, or advice to non-SMSF clients only?
Once you’ve answered these questions, you can start seeking out partners that either don’t offer the same service, or who are happy to have a referral arrangement. Ideally, you need to ask yourself whether you really are an SMSF specialist, then partner with a complementary adviser from the other profession who is the opposite of you. That way, there can be a clear delineation of services between the two businesses and minimal conflict.
While it may look like a battleground at the moment with a clear mandate on the type of advice you want to give, potential adversaries could well be complimentary referral partners. You just need to find the right match.
Kath is recognised as one of Australia’s leading authorities on licensing for accountants. In a career spanning 20 years, she has remained passionately committed to assisting accountants to expand into financial planning. Kath has also recently established Licensing for Accountants, an independent firm which supports and transitions accountants into licensing.
