Timely warning for Fin. Planners and Accountants

Illegal ??? That's a bit of a stretch. It depends what the declaration is...Many lenders hand over these stupid forms and ask the accountant to give financial advice. They usually refuse and rightly so. Its like asking your doctor for dental advice. Its medicine but a whole different field.

The major SMSF lender of choice still asks for an accountant sign off on what is financial advice. Perhaps their own lawyers, Gadens, need to explain the legalities ??? Every SMSF loan is the same silly issue.

Most professional advisers are well trained and know what their job limits are. They know what they are qualified / licensed / insured to advise on. If the advice certificate is dodgy we refuse. No way will I sign off as accountant on financial advice. The lender than allows us to change it or gives us a watered down version ... In our firm we have all the qualifications and have always found a solution once the lender agrees.

In many cases we are approached by those doing cheap SMSF loans deals with cheap smsf providers. At the last minute they ask for someone else to sign off....They have sold the client on a SMSF and then expect someone else to sign off as these firms lack the qualifications. They expect it to be a simple issue. Thats what they tell their client. However it generally requires AFSL advice that also considers credit risks and SMSF (tax) advice....So a person wearing all the hats helps. But it isn't free.
 
Not the same, but similar vain I guess, my accountant just signed a certificate on my income for a non conforming loan that I am currently sourcing. Nothing illegal about it as far as I know, and not SMSF.

However, I have been a client with current accountant for 2 years, he declares an income from projections of current developments in progress and also overseas income that I can not declare which is substantial.

MTR:)
 
Mr. Fabulous said:
http://www.adviservoice.com.au/2014...enders-advice-certificates-may-breaching-law/

I had an accountant friend ask me a while back if I could sign one of these. At the time I said 'no problem'... Until I saw the actual document. I then told him I wasn't prepared to do it as it essentially puts all the risk on the adviser/accountant and off the lender. Also, it appears it may be illegal as per the link above.
Click to expand...

I agree with the article. There could be many laws breached by the signing of these documents. I read one recently which requested the lawyer to sign off on financial advice, and an accountant to give credit advice. I was required to explain a mortgage to a company - which you can't do as the company doesn't have hears, but I had to give the advice to the director of the company which was giving a guarantee to a borrower. The borrower was the same person as the director of the company and the instructions where that the borrower and the director could be be present at the same time. I over came this by having the person stand in the door way between to rooms so that he was both in one room and in another.:confused:
 
Aaron_C said:
Yes Paul SMSFs are still a legal quagmire and it doesn't surprise me why many lenders like CBA stay away from it.
Click to expand...

CBA stay away as their early foray was illegal. Many non-compliant SMSFs exist because of it. Understand the ATO hit bank with s264 notice but have never acted suggesting the trustees were not blamed.

CBAs SMSF product had all properties owned by a custodian company that the BANK OWNED. ...Imagine allowing title to your mortgaged home (and all other borrowers) to be registered in the name of CBA XXXX Pty Ltd ???

The key issue was fixing it without stamp duty and questions about land tax exemptions. Certainly not SIS compliant.

Anyone with inside knowledge know if they ever resolved this after they shutdown SMSF lending ?
 
Paul@PFI said:
CBA stay away as their early foray was illegal. Many non-compliant SMSFs exist because of it. Understand the ATO hit bank with s264 notice but have never acted suggesting the trustees were not blamed.
Click to expand...

So if even the largest bank in Australia who pays big law firms like Mallesons millions of dollars still cannot get it right? What hope do the rest of them have?
 
Aaron_C said:
So if even the largest bank in Australia who pays big law firms like Mallesons millions of dollars still cannot get it right? What hope do the rest of them have?
Click to expand...

They have the best team of financial planners too....Ask any lawyer. None of them got jailed.
 
Mr. Fabulous said:
MTR, you're actively developing? I didn't know that! I was under the impression that you were looking to do your first one.
Click to expand...

Developing 3 this year, but was also developing in the last Perth boom, 2001, doing 4 pa but that was not multi, single homes (land and house packages), I have been around a while now.

MTR:)
 
Well there you go, learn something new every day!

P.S. Congratties on having achieved so much thus far and good luck with everything in the future.
 
I'd post a link but anything i post will be deleted soon.Anyhow re:link if i was to post one, SMSF's are being targeted by scammers.TC all.
 
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