1. Does A.S.A.P. have its own Australian Financial Services License?
ASAP Advice Pty Ltd (“A.S.A.P.”) is a Corporate Authorised Representative No. 1248127 of Interprac Financial Planning Pty Ltd, Australian Financial Services License No. 246638. Statements of Advice from A.S.A.P. are provided under this AFSL.
A.S.A.P. and Interprac sub-authorise the advisers providing the advice. For more information, refer to our Financial Service Guide.
2. Would our accounting firm be a licensee of A.S.A.P.? Or is our role purely introducing the client to A.S.A.P. to request a Statement of Advice?
No, A.S.A.P. are not licensing you to give advice.
By using A.S.A.P. you are making a referral to a digital adviser and it is our advisers who sign off the advice to your client. Once our Statement of Advice (SoA) is issued, the accountant is then able to help the client implement those recommendations.
3. Do we require any of the usual compliance information such as FSG documents, dispute resolution procedures etc or is this all included with your SoA being a direct service to the client?
A.S.A.P. provide a direct advice service to the client which includes our Financial Services Guide, dispute resolution process, professional indemnity insurance etc.
4. In relation to advertising, are we able to advertise we offer SMSF advice if using your service, or is there any branding etc we can use on our website from your firm to show potential clients we have this service available?
You won’t be able to say you offer SMSF financial product advice, but you can say that you work with us and that we provide financial product advice when your clients require it. Please see our document ‘Explaining the A.S.A.P. service to clients’.
5. Are A.S.A.P. covered for public indemnity in relation to all advice issued under the SoA and where do we sit within that cover in the event of an error or dispute arising?
Yes. A.S.A.P. are covered by PI insurance which covers the scope of our financial product advice in our SoA. We are responsible for the recommendations provided in our SoA. You would still need your own PI insurances for the accounting and tax services you provide.
6. Can I answer specific questions the client asks?
Yes, providing you provide factual information, tax advice or compliance advice only (see Guide 1) and take care not to influence, suggest or endorse any particular decisions or transactions.
We recommend A.S.A.P. users undergo training in this area and have agreed a discounted rate for the L4A online module “Where the licensing line lies”.
7. Could I use A.S.A.P. even though I have my own license?
There is no reason an adviser can’t refer to another adviser so long as the client understands who is responsible for that advice. However recent ASIC Information Note 216 says that accountants who do have a license are unable to make use of the exemptions set out in Guide 1, and must instead give that advice under their own license (i.e. through an SoA or written record of advice). Therefore we would not recommend using A.S.A.P. until these rules are clarified further, as A.S.A.P. relies on the accountant being able to give tax advice.
8. Could I use A.S.A.P. with a client who is not present in the room with me (e.g. by telephone)?
Yes, we have a PDF version of the online scoping tool which is designed so that you can email to the client and talk it through by phone together. You would then enter this information to the A.S.A.P. system on the client’s behalf.
The client will receive our confirmation of scope letter to sign and confirm they are happy with these decisions once they have had a chance to re-read what was agreed and ensure they are comfortable with who will take responsibility for each decision. This also sets out the scope of our scaled advice.
Clients also need to complete the A.S.A.P. Client Questionnaire (‘fact find’) and will receive a copy of our Statement of Advice by email.
9. Once a client has received a Statement of Advice from A.S.A.P., am I able to help them to implement the transaction?
Yes. Once the client has received an SOA the accountant can assist the client with implementing those recommendations under (advised) client instruction. E.g. completing a rollover form or paperwork to start a pension. The accountant can also explain the information in the forms.
Accountants can supply a trust deed prepared by lawyers and arrange to set up the SMSF but they should not be drafting the documents themselves unless legally qualified.
If an accountant is merely completing forms on the instruction of the client then the accountant will not be ‘dealing by arranging’ . An exemption in regulation 7.1.29(3)(f) provides that conduct in relation to interests in an SMSF that would otherwise amount to ‘dealing by arranging’ is exempt from licensing if certain conditions are met. These are:
- The person receiving the service is, or is likely to become, the trustee (or director of a corporate trustee); and
- Other than for the purpose of compliance with the SIS Act, the accountant does not give any advice on acquiring or disposing of a superannuation product, investments, rollovers or contribution levels.
This exemption does not apply to financial products other than SMSFs, such as rollovers,
This SMSF exemption does not apply to rolling over an existing superannuation fund as that would constitute the disposal of a financial product that is not an SMSF.
There is a fine line between merely providing administrative assistance and ‘arranging to deal’. ASIC considers a person to be ’arranging to deal’ if their involvement is of sufficient importance that without them, the transaction would not have taken place. If the client communicates with you as a key person to acquire an investment or arrange a superannuation rollover beyond just completing and sending forms, you are more likely to be ‘arranging to deal’ and require a license authorisation.
Passing on money or forms will not amount to ‘arranging to deal’, unless the accountant is being paid a commission or benefit if the client enters into the product. ASIC considers that, whilst accountants can receive a fee from the client for their time, receipt of benefits that relate to whether a transaction proceeds suggests a more active involvement in the transaction.
10. Additional question: How do the laws on ‘arranging’ apply to accountants who refer their clients to planners, particularly digital advisers?
- Referral to a financial planner
Providing that an unlicensed accountant stays within the rules in terms of their conversation with the client (refer to Guide 1 of this set of 2), they are able to introduce the client to A.S.A.P. as a referral to an independent financial adviser.
They can also assist the client in deciding the scope of advice required (see Section 3 of this Guide).
Accountants are able to provide a service of passing on advice as per Corporations Act regulation 7.1.31. However they must make it clear A.S.A.P. is giving the advice and they themselves are separate to that advice and cannot provide any recommendations or endorsements of the client’s decisions.
Accountants can assist the client in understanding any factual terms and information requested in forms/questionnaires. However they cannot make any statements about what the ultimate advice will be nor influence the client’s answers.
- Implementing the advice
Once the client has received an SOA the accountant can assist the client with implementing those recommendations under (advised) client instruction. Refer to the previous FAQ above.