The Association of Financial Advisers (AFA) has joined the growing clamour against a Federal Government decision to exempt accountants from aspects of the Financial Services Reform Act (FSRA). Intermediaries who are being forced to gain a licence say accountants shouldn’t be allowed to provide advice on self-managed super funds (SMSFs) without being licensed.

AFA President Robin Yates said his association’s members “are not in favour of any group of professionals, large or small, being exempted from participation in the FSRA.”

“SMSFs are an integral part of the superannuation scene,” he said. “Why should a certain group of advisers [meaning the accountants] be exempted from the rules which all other advisers will have to adhere to when giving advice?”

Fair point, but it’s probably a little late. The accountants spent much of last year lobbying for the exemption, and won the support of the powerful Parliamentary Joint Committee on Corporations and Financial Services.

They said accountants would have had to meet “substantial licensing and compliance costs” with no consumer benefit, as accountants who are members of industry groups must comply with ethics, education and disciplinary rules enforced by their groups.

They also argued – successfully – that the costs associated with FSRA licensing “would threaten the delivery of services by smaller suburban accounting practices which currently provide a one-stop shop to consumers”.