FSR & unlicensed Chartered Accountants

The financial services industry has seen a wide range of regulatory changes over the last few years. These changes have had an impact on members in business through to members in public practice.

The most significant has been the introduction of the Financial Services Reform Act 2001 (FSRA.) This Act was passed in 2001, and formally commenced in March 2004 bringing all financial services and products under one regulatory regime, with the objective of increasing the level of compliance and competency in the financial services industry.

The FSR Act, which amended the Corporations Act, imposes:

  • a single licensing regime for financial sales, advice and dealings in relation to financial products,
  • consistent and comparable financial product disclosure,
  • and a single authorisation procedure for financial exchanges and clearing and settlement facilities.

The regulatory framework covers a wide range of financial products including securities, derivatives, general and life insurance, superannuation, deposit accounts and means of payment facilities.

This had specific effect on members who operated as financial planners providing financial advice and also those unlicensed members in practice who provided what could be categorised as traditional accounting services.

It is important for members to fully understand the implications and practical application of the financial services regulations. (Refer to the FSR: Accounting Industry Guide) The main components for unlicensed chartered accountants are set out in the Regulations 7.1.29, 7.1.33 and 7.6.01.

The Institute continues to extensively liaise with Government in regards to the efficient and practical operation for member operating under FSR.

The Institute continues to work closely with Government, Treasury and ASIC on the most recent “Future of Financial Advice” reforms. The focus of this ongoing consultation is on both licensed financial planners and unlicensed members.

Updates in regards to the Institute’s consultations with Government are communicated to members on the website and through the fortnightly e-bulletins.

Article last updated 3 November 2010