Accounting, advice bodies join forces to to ease access to professional advice

Five major Australian professional bodies – CPA Australia, Chartered Accountants Australia and New Zealand (CA ANZ), SMSF Association (SMSFA), Financial Planning Association (FPA) and Institute of Public Accountants (IPA) – have joined forces to ensure Australians can get the advice they need to understand the government's COVID-19 economic packages, including early access to their superannuation.

In a decision handed down by ASIC on Tuesday, it will be easier for Australians to get assistance from professional accountants and financial planners in making decisions about their financial position in the face of the COVID-19 pandemic. 

Registered tax agents (RTAs) can now temporarily give advice about early access to superannuation, without having to hold an Australian Financial Services (AFS) Licence, and financial planners will have access to simplified advice documents in the place of a long and complex statement of advice.

“There has been an increasing demand for advice around early access to super since the government announced Australians could access up to two parcels of $10,000 in superannuation tax-free as part of their second stimulus package,” said the joint bodies.

“We have come together and collectively worked with ASIC to help the Australian community and to ensure there are more skilled advisers in the marketplace to address this demand.

“This move has removed significant red tape and ensured a simple, streamlined process is in place so those facing financial hardship during this time get the right advice.”

IPA CEO Andrew Conway said that at this time in particular, Australians need access to high quality financial advice. 

“Decisions around superannuation are critical to quality of life. For this reason, a decision to access superannuation early should be based on advice that is easily accessible.” 

CPA Australia CEO Andrew Hunter agreed that these unprecedented times called for a pragmatic approach to regulation and a commitment from the associations to work together in the public interest.

“Over 600,000 people have registered their interest accessing their super early, so there is great need for support. It’s important that these people and others also considering their options can access professional advice.”

CA ANZ Group executive, advocacy and professional standing, Simon Grant said that accountants have an important role to play. 

“As trusted advisers, accountants are well-placed to provide individuals with advice and many already have an existing relationship with their accountant. This is therefore an excellent extension for clients,” he said.

Relief to facilitate advice 

To assist the provision of affordable advice on early access to super, ASIC has allowed advice providers not to give a statement of advice (SOA) to clients when providing advice about early access to superannuation; and permitted registered tax agents to give advice to existing clients about early access to superannuation without needing to hold an AFS licence. 

The regulator has also issued a temporary no-action position for superannuation trustees to expand the scope of personal advice that may be provided by, or on behalf of, the superannuation trustee as ‘intra-fund advice’. 

ASIC underlined that its relief and no-action position are temporary and subject to important conditions, including:

• clients must be provided with a record of advice (ROA), which meets certain content requirements. An ROA is a shorter, simpler document that sets out the advice that is being provided;
• the advice fee, if any, is capped at $300;
• the advice provider must establish that the client is entitled to the early release of their superannuation; and
• the client must have approached the advice provider for the advice.

ASIC also added that it will conduct surveillance activities to monitor the advice provided under this relief, to ensure that advisers, registered tax agents and superannuation trustees are acting in the interests of their clients and members.