New SMSF Licensing Rules

Peter Johnson, current as of: 8 August 2018.

If you’re considering getting licensed to provide SMSF advice, the time to act is NOW. New rules come into force on 1 January 2019 governing the education and experience required by practitioners seeking to be an authorised representative of an AFSL.

From January, you will require the following:

  1. A degree or higher in Financial Planning. This includes an 8 subject Graduate Diploma in Financial Planning or a Masters in Financial Planning; and
  2. A twelve month professional year under supervision – at this stage, we don’t know what this entails.
What do we make of this?

Realistically, if you do not become an authorised representative of an AFSL before 31 December this year you will be unable to meet the new criteria without sacrificing a year or two of your career. You’re effectively starting over.

What to do immediately

First, you need to make a decision about licensing. Being unsure means your answer is “no”. There is no in between. And if your answer is no there is nothing to worry about.

If, however, you decide to get your license, then you need to find out what education you’ll need to meet the new requirements – it could be as little as a single subject if you are already a CA or CPA. Once you obtain your qualification/s you need to become authorised under an AFSL before 31 December. Simply holding the qualification is not enough. 

Our SMSF Services Director, Peter Johnson, can provide you with any information and assistance you need to jump the 1 January hurdle.  Please contact him at anytime.

Watch this short video for further information: