A new form of financial advice licence will replace the licensing exemption at present enjoyed by accountants, who will also be allowed to offer a much broader range of financial advice to clients.

Under new guidelines from Financial Services Minister Bill Shorten, accountants seeking to advise on self-managed superannuation funds will need to have a limited Australian financial services licence.

Holders of the limited licence will also be able to give “class of product advice” on basic deposit products, general and life insurance, securities and simple managed investment schemes.

The Financial Planning Association (FPA) has applauded the removal of the accountants’ exemption.

FPA CEO Mark Rantall says the new limited licence will “encourage greater industry competition by evening up the disjointed playing field that is part of the current regime”.

Mr Shorten says the new licence will extend the consumer protection provisions of the Corporations Act, “such as the best interests duty in the recently passed Future of Financial Advice reforms, to financial advice provided by accountants”.

He says it does not allow accountants to offer specific product advice but does “provide more strategic and low-cost forms of financial advice which will greatly assist Australians to manage their finances effectively”.

The new regime will be phased in between July 1 next year and July 1 2016. Public consultation on draft regulations will take place in the second half of this year.

Institute of Public Accountants CEO Andrew Conway says Mr Shorten “has listened to the accounting profession”.

“These reforms will ensure that the trusted adviser to Australians – their public accountant – is able to assist them in making sense of today’s complex financial environment,” he said.