RG146 time bomb still ticks for a third of all accountants

One third of accountants in public practice are yet to decide on a business model to be compliant with ASIC's RG146 requirements, with just over a month until the standard becomes compulsory, according to research conducted by Intuitive Super over the past several months.

 

RG146 is a uniquely Australian financial regulation issued by ASIC relating to the minimum training required by individuals providing financial products. Basically, it means that such an individual has completed relevant training and passed an exam recognised as meeting RG146 criteria so is then able to provide advice on financial products in Australia.

From 1 July 2016, all individuals must meet the RG146 requirements before they can provide financial products to the general public, including up-to-date ongoing training through a CPD program, with ASIC stating that significant penalties will apply for those who are not suitably authorised.

Intuitive Super’s research has confirmed only a quarter of respondents have a RG146 training solution either in hand or underway (25%) or have already become an authorised representative (8%). Only 4% of respondents will defer to relationships with Financial Planners and 11% of firms will either walk away from SMSF work or do not have SMSF fees to worry about.

"It is the staggering 30% of firms our research has revealed who are still deciding that we are concerned about” said Intuitive Super Director Wayne Turner. “With only weeks out from ASIC’s 30 June deadline the urgency around RG146 has been pushed back by tax lodgement deadlines and firms doing strategic tax planning, RG146 will sneak up on them before they know it!”

Competition has been fierce among training providers as the deadline approaches, with SMSF support providers Intuitive Super partnering with the Australian accounting profession to offer another option to gaining a licence or signing up with a Financial Planning dealer group.

It means that accounting firms can retain their SMSF clients without jumping through licencing hoops, but rather using Intuitive Super to do the legwork - along with administration and real time reporting services that are white labelled, streamlined and cost efficient, everything Intuitive Super does is aimed at enhancing and respecting the accountants’ SMSF client standing.

“Our philosophy is simple,” says Wayne Turner. “Many accountants are still struggling to make a final decision and choose a model that suits their business and their clients’ needs around the impending RG146 requirements. We have the opportunity to show accountants a smarter, more flexible way ahead of 1 July.”

In light of our latest research, thinking outside the box and combining talents has produced a workable solution to help accountants retain clients and remain compliant in what is otherwise a turbulent time in the market place.

Last Updated:15-08-2019 13:21