{"id":908,"date":"2015-09-17T08:32:16","date_gmt":"2015-09-16T23:02:16","guid":{"rendered":"https:\/\/fwgs.net.au\/?p=908"},"modified":"2015-09-17T08:32:16","modified_gmt":"2015-09-16T23:02:16","slug":"beware-of-credit-hawking-risks-accountants-told-rg146-2","status":"publish","type":"post","link":"https:\/\/fwgs.net.au\/beware-of-credit-hawking-risks-accountants-told-rg146-2\/","title":{"rendered":"Beware of Credit “hawking” risks, accountants told (RG146)"},"content":{"rendered":"

Article continued from yesterday …<\/em><\/p>\n

Mr Lindsay added that “the challenge for accountants is to understand where those lines are, and to understand very clearly what they’re licensed to provide and what they’re licensed to be able to discuss”.<\/p>\n

Ms Lumsden Kelly said accountants risk violating prohibitions in the Corporations Act<\/em> by overstepping their advisory boundaries and spruiking products and services related to self-managed super funds which they are not licensed for.<\/p>\n

“It’s strictly a Corporations Act<\/em> requirement,” she said. “This requirement has never applied to them [accountants) in the past so it’s essentially a new requirement that’s going to apply to them once they obtain a limited licence, or even if they choose to become an authorised representative of another licensee.”<\/p>\n

However, the lines are blurred when determining whether advice is solicited or unsolicited, noted Ms Lumsden Kelly.<\/p>\n

\u201cI think that\u2019s where the accountants are more likely to fall afoul of hawking \u2013 it\u2019s less clear,” she said. “Has the client made a positive request? What was it that actually triggered that request, and was it reasonable in the context of the conversation that was being had?\u201d<\/p>\n

The \u201calarming\u201d lack of accountants obtaining licences has resulted in a failure to address any post-licensing compliance obligations, according to Ms Lumsden Kelly.<\/p>\n

\u201cIt is something that should be in a set of standard policies and procedures that an accountant implements into their practice, but the degree to which that is done effectively in the mad scramble to get a licence is questionable,\u201d she added.<\/p>\n

An ASIC crackdown could result in problems for accountants who fail to properly educate themselves about their new obligations, she said.<\/p>\n

\u201cIf there\u2019s a high level of ignorance about the obligation, which we are obviously at risk of because of the time pressures, there is scope for it to be breached a lot,\u201d she concluded.<\/p>\n

Our RG146 course is a two-day facilitator lead training program. We understand the difficulty accountants have with time so our philosophy is that we come to the accountant. Our first RG146 course is being held in NSW on October 7 and 8 and costs $1,250.00. To register please send an email to info@wordpress-784484-2675404.cloudwaysapps.com<\/a><\/p>\n

Source: SMSF Adviser Written by Mitchell Turner Monday, 14 September 2015<\/p>\n

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