SMSF Advice

The Limited AFSL was introduced to allow SMSF advisers  (who in the past mainly accountants operated under the abolished accountants’ exemption) to continue to provide advice on the establishment and wind up of SMSFs (with expanded ability to provide advice in this space in comparison to what they were allowed to do under the old exemption). Although the license is limited in comparison to the “full/complete” AFSL, the licensee and their authorized representatives’ obligations are not limited, in particular meeting Best Interest Duty.

The recent superannuation reforms are an example where advisers need to do further due diligence to ensure the advice is appropriate. This, together with ensuring the initial and the ongoing suitability of an SMSF to their clients highlights the significance of the SMSF advisers’ responsibilities under the new limited AFSL framework.