SMSFs are financial products and advice related to interest in a SMSF can only be provided by an authorised person under an Australian Financial Services Licence ( AFSL). Real property is not a financial product. However, providing a recommendation or a statement of opinion on using an SMSF as a vehicle to invest in real property is financial product advice.

From 1 July 2016 all accountants must be covered by an AFSL to give advice about acquiring or disposing of an interest in a SMSF.

The SMSF services an Accountant without a AFSL can provide

The following services can be provided by an accountant without an AFSL as long as appropriate warnings are given ensuring compliance with the superannuation legislation.

• Services related to operating, structuring or valuing of SMSFs
• Assistance on administrative and operational issues
• Assistance on the process of winding up or exiting a SMSF

When providing these services you must provide a written statement to your client including that:

• you are not licensed to provide financial product advice under the Corporations Act
• they should consider taking advice from an AFS licensee before making a decision about a product.

ASIC INFO 216

How the AFSL regime applies to SMSF services provided by an accountant.

The SMSF services an Accountant with a limited AFSL can provide

One or more of the following services can be provided by an accountant with a limited AFSL depending on the authorisation granted by ASIC

• Financial product advice about SMSFs, a client’s existing superannuation holdings in certain circumstances
• Financial product advice about a class of product advice about superannuation products, securities, simple managed investment schemes, general insurance products, life risk insurance products and basic deposit products
• Deal in an interest in a SMSF

Limited Licensees need to meet compliance requirements mention below

• Relevant requirements of the Corporations Act 2001, including the conduct and disclosure obligations in Chapter 7
• Relevant licensing conditions as per the Corporations Act 2001
• Do not require to lodge an auditor’s report annually if they do not handle client money, instead can lodge an annual compliance certificate (Form FS76)

ASIC – What is a limited AFS licensee

Scope, applying, lodging an annual compliance certificate & training and qualification

Financial advice and regulations – Link to the library

The SMSF services a full AFSL holder or an Authorised Representative can provide

Some of the services can be provided by a full AFSL holder or an authorise representative of a AFSL depending on the authorisation granted by ASIC are as follows

• Financial product advice about SMSFs
• Deal in financial products
• Establish a margin lending facility within a SMSF (you will need to be covered by a full AFS licence with an appropriate authorisation)

Other licences required by a full AFSL holder if advice provided on the below areas

• Australian Credit Licence

If you are discussing options for borrowing for investment in residential property through a SMSF with your clients

ASIC RG 203

Do I need a credit licence?

Tax advice on SMSFs and other financial products

If you are covered by an AFSL, including a limited AFSL, you can rely on the exemption in Corporations regulation 7.1.29(4) to provide tax advice on financial products that are not covered by an authorisation in your licence.

You must provide a written statement stating. 

• you do not have the authorisation to provide this advice as an AFS licensee (whether full or limited) or as the authorised representative of an AFS licensee
• taxation is only one of the matters that must be considered when making a decision on a financial product
• they should consider taking advice from an AFS licensee with the appropriate authorisation before making a decision on the financial product.

ASIC Corporations (Recognised Accountants: Exempt Services) Instrument 2016/1151

Tax advice on SMSFs and other financial products

Tax agents and BAS Services

If you are covered by an AFS licence and are also a registered tax agent or BAS agent, you can rely on section 766B(5)(c) of the Corporations Act to give advice that is within the ordinary course of your activities as a tax agent or BAS agent and which is reasonably regarded as a necessary part of those activities.

Referring clients to AFS licensee or Authorise Representatives

If you are not authorised to provide advice in a certain area you can refer clients to an appropriately authorised person

ASIC RG 246

Conflicted and other banned remuneration

APES 110

Code of Ethics for Professional Accountants

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