SMSFs: What advice can your accountant provide?

Taking on the role of an SMSF trustee can be challenging, leading many trustees to rely on professional service providers for assistance with the administration and compliance aspects of their fund.

Although SMSFs are often referred to as “do it yourself (DIY)” funds, this couldn’t be further from reality. All SMSF trustees will, at some stage, need to engage professional service providers.

This could be to carry out the annual compliance audit, or to prepare and lodge the funds financial statements each year. Advice may also be sought on investment options or the rules and regulations around borrowing within super.

Prior to 30 June 2016, SMSF trustees would usually approach their accountant for assistance regarding their fund, as it was probably their accountant who set up that SMSF for them. At the time, the “accountants’ exemption” of the Corporations Regulations allowed accountants to provide advice on setting up and winding up of SMSFs without needing to hold an Australian Financial Services Licence (AFSL).

As you would no doubt be aware, this has changed and there are now restrictions in place on the areas of advice that accountants can provide to SMSF trustees. Accountants can only provide advice on certain SMSF-related matters.

As an SMSF trustee, you need to ensure you are getting assistance from someone licensed and qualified to do so. But what matters can your accountant assist with?

What are the advice rules for accountants?

Put simply, accountants can provide a wide range of advice and services to the trustees of an SMSF, but if the financial advice and services involve personal advice, the accountant must hold an Australian Financial Services Licence (AFSL) or be authorised under another AFSL.

This is the same licence financial advisers are required to hold to provide personal advice about financial products and services.

If your accountant does not hold an AFSL, or is not authorised under another AFSL, they can still assist you with basic SMSF administrative tasks (such as the paperwork for fund establishment and rollovers) and provide factual information about investments and strategies.

If you want advice and information about the suitability of an investment product or strategy for the SMSF, your accountant must hold an AFSL, or be authorised under another AFSL.

When you need to use a licensed accountant