Speaking at the Institute of Public Accountants national congress on the Gold Coast on Friday, Australian Securities and Investments Commission (ASIC) commissioner John Price said 46 licensing questions have been removed from the limited licence application forms.
“In implementing this new regime we have been mindful to reduce red tape,” he said.
“In addition, to help reduce the costs of operating within the AFS licensing regime, holders of a limited AFS licence can lodge a compliance certificate rather than undertake an annual external audit of their financial statements and internal controls,” said Mr Price.
“This exemption from the annual external audit requirement will be available to limited AFS licence holders who do not handle any client money in connection with the provision of financial advice,” he said.
But he was quick to point out that even though limited licence holders will be exempt from the annual external audit, they will still need to meet the same ongoing requirements as other AFS licence holders.
“[This includes] providing clients with a Statement of Advice where required, as well as membership of an external dispute resolution scheme and compliance with the Future of Financial Advice measures, such as the best interests duty,” said Mr Price.
ASIC has received 24 applications for limited licences since 1 July 2013, and has issued seven, he said.
The limited licensing regime is set to replace the accountants' exemption, which expires on 1 July 2016.
The accountants' exemption currently allows accountants to provide advice on the set up and closure of self-managed superannuation funds.
“Recognised accountants who apply between 1 July 2013 and 30 June 2016 will be able to take advantage of transitional arrangements for entry into the AFS licensing regime,” said Mr Price.
“Under the transitional arrangements, reduced requirements will apply where the responsible managers of the applicant are recognised accountants,” he added.
