For more than a decade, accountants have been operating under the restrictions of financial services licensing and limiting their services to comply with the exemptions. As a result, any advice they have provided has typically been passed off as ‘tax advice.’
Contrary to popular belief, the tax advice exemptions, along with the exemptions that allow accountants to undertake compliance work are set to stay. It is only the exemption to recommend the establishment of self-managed superannuation funds (SMSFs) that will be removed. So going forward, those who have been following the rules will be able to continue operating largely as they’ve done in the past.
However, sticking with the status quo to avoid licensing imposes its own set of limitations, forcing accounting to remain a compliance-based practice.
Thankfully, many of the licensing solutions available to assist accountants in servicing their clients and to take ownership of the ‘advice’ space don’t force them to also provide investment recommendations.
This provides a unique opportunity for accountants to get a ticket to the game. Licensing allows them to:
- Be proactive and ask questions to understand what clients want to achieve
- Provide guidance on how to achieve those goals (not just responding to the client’s suggestions)
- Focus on the clients’ end goal, not just the tax saving
Accountants have the opportunity to service their clients the way they want to be serviced, taking a proactive role in their financial affairs and assessing the big picture through asking questions, instead of just answering them.
Operating in a more holistic and strategic manner will allow accountants to take the coveted role as a clients’ most trusted, principal adviser. All too often accountants clean up the mess of another adviser and it does not need to be this way. Rather than viewing licensing as a compliance cost, look at is as the key to unlocking a broader range of services – quality services that clients want, need and are prepared to pay for.
So, if you want to fully service your clients, even if it’s just in the SMSF space, then licensing is your ticket to the game.
