Sent: 14-09-2010 12:10:33
In this issue:
Return to full article list
HomeFree weekly newsletterSelf Managed Super Fund ArticlesContact usLogin
Accountants Show The Way
The Federal Government's wheels are slowly but surely whirring back into action.
Unfortunately my wish for a hung Parliament, and hence a longer caretaker period, did not eventuate.
At the beginning of 2010 Parliament was meant to sit for two weeks commencing on 20 September - that is, next Monday.
After the election there have been some adjustments to the sitting dates. Parliament will sit again on 28 September for a few days. Surprisingly it will rise on 25 November and not sit again until the new year.
It is difficult to know what legislative program the Government will have especially in relation to superannuation and financial services.
What will be the fate of the proposed ban on commissions? One can only presume they will come into effect in some form.
Our new Minister is an Old Xaverian. This means he was educated by the same religious order as the Leader of the Opposition. Odd that you don't hear Mr Shorten referred to as the "Mad Such and Such". But I digress.
In any event I'm not sure what impact these commission rules will have if the accounting ethics and standards board's draft rules come into play.
Perhaps the Government doesn't even need their new rules.
I wrote about these draft accounting standards several weeks ago. They are quite controversial.
No doubt various accountants are threatening to leave their accounting association if it doesn't change course and "get rid of these outrageous proposals" (or similar invective).
I find it simply fanciful that an accountant would leave their accounting body for such a reason. How many accountants do you know who would stop being a CPA, CA or NIA member and only keep their membership of other associations?
This comment is not a sledge at any other financial services association, or a pejorative on their professionalism or purpose.
I'm merely stating what I have universally found. Accountants have generally worked hard for their CPA or CA designation and would find it almost impossible to give it up.
I'm told that in some general insurance areas, brokers can receive a "fee" - perhaps called a Risk Management Fee or similar - from general insurance companies. As this is a fee and not a commission it apparently doesn't need to be disclosed. It's my understanding that these fees are the same amount as commissions.
One can only assume that the draft accounting standards will be changed to ensure that these types of payments can't slip through the cracks. I hope that Mr Shorten makes a similar change to his proposals assuming that they are indeed necessary.
Finally please consider purchasing a copy of "A How To Book Of Self Managed Super Funds". You can look at the contents page at the following link: http://www.atcbiz.com.au/r.php?r=0mjd6ne
I have just released the 3rd edition.
For details of the changes made since the previous release visit - http://www.atcbiz.com.au/SMSFBookAmendments.pdf
There have been many changes to this book. Version 3.0 contains over 30 pages of new material.
This update has taken longer than I would like however I have been delayed due to a frustratingly steady stream of political policy announcments, review documents and the release of various ATO documents.
Two purchase options are available - once only subscription - $55 inc GST - or an annual subscription will gives you access to all the updates made throughout the year ($120 inc GST). The book can be purchased at the following link: http://www.atcbiz.com.au/r.php?r=5a4agqb
This email is general in nature only and does not constitute or convey specific or professional advice. Legislation changes may occur quickly. Formal advice should be sought before acting in any of the areas discussed. Be aware that the information in these articles may become innaccurate with time. Responsibility is disclaimed for any inaccuracies, errors or omissions. Particular investments are neither invited nor recommended and hence this publication is not "financial product advice" as defined in Section 766B of the above legislation. All expressions of opinion by contributors are published on the basis that they are not to be regarded as expressing the official opinion of any other person or entity unless expressly stated. No responsibility for the accuracy of the opinions or information contained in the contributor's articles is accepted by any other person or entity. Copyright: This publication is copyright. If you wish to reproduce this article you require a license, which can be purchased here, to do so.