Accountants will be able to provide broad general insurance advice under a limited Australian financial services licence (AFSL) from July 1 this year.

But they will not be able to provide specific product advice under this new licence, Financial Services Minister Bill Shorten told an Institute of Chartered Accountants event in Sydney last week.

“The regulation effectively replaces the current accountants’ licensing exemption with a limited AFSL from July 1 and will enable accountants to provide a greater range of advice to clients than the current exemption,” he says.

This expanded advice will cover establishing self-managed super funds, broad advice on superannuation, general insurance and deposit products, the minister says.

The transition for accountants to the new licensing regime will enable “recognised accountants” to make a streamlined application between July 1 this year and July 1 2016.

A recognised accountant is a member of one of the three main accounting bodies.

“Recognised accountants will not have to demonstrate they have experience providing financial services to receive the limited licence,” Mr Shorten says.

“Licensees who receive an AFSL under this streamlined process must complete a knowledge update review within three years of the date on which the licence is granted to maintain their licence.”

After July 1, 2016, accountants applying for an AFSL will be required to satisfy the same experience requirements as anyone else.