Accountants will have to get used to being licensed before they can give advice, and to complying with the best interests component of the Future of Financial Advice reforms.

Treasury Markets Group Executive Director Jim Murphy told a Senate economics committee last week this was part of future legislation to license accountants, especially when giving advice on self-managed super funds (SMSFs).

“If accountants are going to be playing in this space, they will have to be compliant with the best interest duty in terms of giving the best advice they can to their client,” he said.

“It is a matter of designing something that does not go too far and actually focuses in on what the accountants are doing in terms of SMSFs.”

Mr Murphy confirmed that accountants will be included in the financial services licensing regime, but could not give any indication when legislation would be introduced.

He expects discussions with the accounting bodies to be concluded this month.

“With the reforms of future financial advice – and this is still to be finalised – the minister is looking at accountants being required to have a financial services licence and they would be licensed by the Australian Securities and Investments Commission (ASIC),” he said.

“It is right that accountants are the gatekeeper for a lot of SMSFs, and once it is finalised this will be an obligation on them to be licensed, to fall within the jurisdiction of ASIC and to be able to provide at least some basic information to people.”

Mr Murphy says the licence will be designed to cover accountants giving advice on SMSFs and also on investments.

“They may not be required to have requirements on everything, but in terms of their operations where they interface with SMSFs they will have to meet certain conditions and requirements,” he said.

Treasury found dealing with the licensing of accountants has not been straightforward, and there needs to be changes to existing legislation such as the Corporations Act.

Mr Murphy says nothing has been done about drafting new regulations as Treasury cannot start until the minister announces the changes.

“What you are doing is removing an exemption. If you remove the exemption the normal law can apply and then ASIC with the regulations may kick in with certain conditions or requirements.”