A self-managed super fund is mainly developed to provide financial benefits to its members after they retire, and even extends to providing financial benefits to the beneficiaries once a member dies.
The members become trustees of the fund, and they decide on which investment options they want to explore.
The issue of retirement investments has become very popular in recent times as more and more people aim to maintain a comfortable lifestyle after they retire.
In the course of making SMSF decisions, you may need advice from professionals.
Initially, you could possibly get the information from your company’s accounting firm.
However, things have recently changed and unlicensed accountants are forbidden from offering advice.
Now, accountants without a legitimate licence are not permitted to provide any SMSF advice.
Whether it be on the disposal of, or acquiring an interest in a SMSF or even providing a recommendation to clients concerning the establishment of a self-managed superannuation fund, advice should not be given by accountants.
Unlike before, a financial accountant that is not licenced and is prohibited from giving clients advice in specific areas.
Before, accountants were allowed to talk to clients about their investment strategy, and provide them with information on whether they should set up or wind down the SMSF.
With the new rules, it has become difficult for accountants, especially unlicensed ones, to provide advice.
For example, they do not have the right to advise a client on whether they should invest in an SMSF.
They can also not give their client any advice pertaining to their investment strategy or contribution.
For accountants to be able to serve in a fuller capacity in an SMSF, they need to get the appropriate licence or be certified, first.
However, not having a licence doesn’t mean that the accountant cannot contribute their services to the fund.
They are allowed to provide some basic SMSF services to clients such as administration services.
An accountant may feel limited in offering their services, especially with the new rules, which now limits the scope of advice they can give to their clients.
If a client is looking for advice from someone who is able to elaborate on the strategies that are likely to work with in an SMSF, they may need to look elsewhere.
This cannot happen if the accountant lacks the necessary certification.
An accountant that seeks to engage SMSF clients at a deeper level will have to take several initiatives.
The option of attaining a limited licence, allows an accountant to engage with clients and to also recommend clients to join an SMSF.
They are also allowed to educate the clients about other classes of financial products such as insurance and investment schemes, which are available.
However, they are not allowed to talk about specific products with the client.
An accountant that applies for a full licence is allowed to perform most of the tasks in the SMSF.
Not only can they give advice to clients, but also, they can give recommendations about particular investment options and insurance products.
They can also advise clients on specific things like the proportion of funds they allocate to specific investment products such as shares and bonds.
For those clients that want to learn about SMSFs in detail, it is advisable that you look for an accountant who is licenced and competent.
However, it is still incumbent on you to understand all the financial products available, the procedure for setting up and winding down the SMSF as well as some of the strategies used in the investments.
It’s important to avoid going to unlicensed accountants as they may not have the capacity to fully engage with you due to the restrictions on them.
Since joining an SMSF is one of the most significant decisions you can make about your future, your accountant should ensure there is transparency so that you can make an informed decision.
If you are looking to establish a Self Managed Super Fund, or need to have your Self Managed Super Fund audited, then look no further than SMSF Pro.
Please call us today on 1300 023 374 or message us through our website https://smsf-auditor.com.au/contact/ for all your Self Managed Super Fund requirements.