MAGAZINE OF CHOICE FOR AUSTRALIA’S WEALTH INDUSTRY
www.moneymanagement.com.au
Vol. 33 No 12 | August 1, 2019
17
EQUITIES
The opportunities in global equities
22
ACCOUNTING
The convergence of accounting and advice
ADVISER SENTIMENT
10
questions on ETFs
Let us give ‘incidental advice’ say accountants BY MIKE TAYLOR
PRINT POST APPROVED PP100008686
A perfect storm AS financial advisers embark on a tumultuous period in their careers with the Royal Commission effects coming through and FASEA exams, it is no surprise many of them are feeling the pressure. From speaking to advisers and organisations such as the Financial Planning Association and Association of Financial Advisers, Money Management has found a worrying sense of negativity and malaise in the industry. Nearly 100 per cent of advisers surveyed for an Investment Trends report said they had experienced negative impacts from the publicity surrounding the Royal Commission while 47 per cent said they had ongoing stress at work, compared to the national average of only nine per cent. Others, meanwhile, were experiencing anxiety, depression or struggling profitability in their business. For some it may be a case of too much to bear with much talk of advisers leaving the sector or selling up their businesses rather than take on the additional regulatory burden. But even this leads to further problems with the ongoing issues passed onto younger buyers instead who end up saddled with debt. Others end up accelerated into junior partner or salaried adviser positions before they are ready and with minimal support from other staff. As to what can be done, advice included keeping on top of health, getting enough sleep and eating well. At work, look at peers to see how they are handling the changes and what you can learn from them.
12MM0108_01-13.indd 1
Full feature on page 14
30
TOOLBOX
Accountants who give “incidental advice” should not have to be licensed, according to major accounting industry body, Chartered Accountants ANZ (CA ANZ). However, the major accounting body has denied it is actually advocating for a return of the so-called “accountants’ exemption”. In a submission addressing the future of the Tax Practitioners’ Board (TPB) which has been made public by the Federal Treasury, CA ANZ has canvassed whether financial advisers should be carved out of TPB jurisdiction with accountants being carved out of the financial advice regulatory regime. It said the TPB Review Panel should consider whether financial advisers “should now be carved out of regulation of the tax profession”. “And vice versa [the Review Panel should], consider whether tax professionals, including all forms of professional tax and accounting advisers, should be carved out of the
regulatory regime for financial advisers and be dealt with under a tax profession/industry regulatory regime,” the submission said. “Specifically, should the tax advice incidental to financial advice now be regulated by the financial advice regulator? And should financial advice incidental to taxation advice, such as some SMSF / superannuation strategic advice now be regulated by the TPB under the tax services regulatory regime rather than by ASIC under the limited licensing regime?” the submission asked. The CA ANZ submission said the organisation was not seeking a return of the accountants’ exemption but, rather, “a new way to allow accountants who maintain their CPD and practice under a strict Code of Ethics to provide additional areas of strategic advice to their clients”. “The outcome of a new way to provide strategic advice in superannuation may well further enhance the basic value propositions of FASEA as well as that of Commissioner Hayne.” it said.
Should product advice negate tax deductibility? MOST financial advisers believe financial advice should be tax deductible for clients, but a significant cohort believe it should not be tax deductible for advice around product sales. A survey conducted by Money Management has revealed that while virtually 100 per cent of advisers support the Government moving to make advice tax-deductible, there is disagreement around whether that deductibility should be applied to all advice. In fact, the survey revealed most support for highly specific advice around transition to retirement (TTR) and superannuation, with significantly less support for where life/risk sales are concerned. The survey has been undertaken at the same time as the Continued on page 3
25/07/2019 2:15:36 PM