Pressure is mounting on the Federal Government to release the next tranche of the Future of Financial Advice (FOFA) reforms that will cover the exemption on licensing for accountants.

Last week CPA Australia and the Institute of Chartered Accountants took full-page advertisements in the print media calling for Financial Services Minister Bill Shorten to release the next FOFA bill.

The exemption was introduced in 2004 by the Howard Government to allow accountants to advise clients on setting up self-managed super funds.

In recent years some accountants have also been promoting such insurance products as workers’ compensation and audit protection cover.

The two accounting bodies say they want legislation to allow them to provide comprehensive advice on setting up a fund or running a small business.

CPA and the Institute of Chartered Accountants have produced a new simpler licensing model for accountants that would enable them to give financial advice within an appropriate consumer protection network.

“Despite the best intentions, it appears the Government is doggedly pursuing a policy that fails on delivering the right outcomes for consumers,” the two bodies said.

“Now is the time to put in place policies that will achieve the best outcomes for the community.”

The final tranche of FOFA was originally planned to be released before Easter. When insuranceNEWS.com.au asked Mr Shorten’s office in early April when the bill was to be introduced, a spokesman said it would be before the end of the month.

Opposition financial services spokesman Mathias Cormann has also called on Mr Shorten to release the bill.

“Labor has been threatening to make changes to this exemption by adding more red tape since April 2010, creating significant uncertainty for accountants and millions of clients across Australia,” he said.

Senator Cormann says any changes to accountants’ licensing requirements should not impose unnecessary additional red tape and costs.

This includes avoiding any limits on the availability and accessibility of professional, independent advice for small business clients considering establishing or closing a self-managed super fund.