There’s less than a month before the Financial Services Reform Act (FSRA) officially kicks in but that hasn’t stopped the Government adding yet more changes to the regulations.

This time, Federal Treasurer Peter Costello has announced a new regulation to give accountants FSRA relief when providing advice on self-managed superannuation funds (SMSFs).

The peak body supporting accountants, the CPA, argues that accountants are often asked about SMSFs but never about specific funds or companies.

The CPA says the decision – something it has been campaigning for over the past 18 months – is an “excellent outcome for the profession”.

Maybe so, but don’t expect agreement from other professional groups which have been forced to undergo intensive training and ongoing compliance costs. The Financial Planning Association (FPA) obviously regards the move as a major capitulation by the Government, saying the FSRA is “being unravelled even before the official start date on March 11”.

Following the release of recommendations by the Parliamentary Joint Committee on Corporations and Financial Services, Mr Costello says the Government accepts the accountants’ SMSF advice shouldn’t require FSRA licensing.   

But the FPA, the peak body supporting financial planners, says the move sets a “dangerous precedent” for further exemptions in an already complicated regime.

CEO Kerrie Kelly says the move is “a big loss in consumer protection” and the Government should reassess its decision to change the regime’s regulations.

“The relief… appears to be an unnecessary further complication of superannuation, creating uncertainty in an area which already requires a great deal of specialist knowledge.”

CPA CEO Greg Larsen says the group is pleased the Commonwealth has “distinguished the valuable contributions that professional accountants, such as CPAs, make to the community, especially on how they should structure their financial affairs”.

“This is a win for accountants and an added bonus for the public,” Mr Larsen said. “They can continue to consult their accountants on superannuation structures without the complexities of seeing two professional advisers, which may not be possible for those living in remote and regional communities.”

The regulation – which will be applicable only to certain registered accountants – will come into effect from the end of February, before the March 11 FSRA start date.