Limited AFSLs may not be granted on time, ASIC warns

In a warning to accountants, ASIC said there is a chance that those who have applied since 1 March 2016 will have to stop providing SMSF advice next month until their applications are approved.

"In cases where ASIC has received an application but has not granted a licence by then, the applicant will not be able to provide SMSF-related financial advice and dealing services," the regulator said.

"They will not be able to give such advice until they are granted a licence or they become an authorised representative of a licensee."

ASIC also warned that accountants providing unlicensed advice after 30 June will be subject to regulatory action.

"Providing unlicensed financial services is a criminal offence," said ASIC senior executive leader, assessment and intelligence, Warren Day.

ASIC said it is currently assessing more than 300 applications for limited AFSLs. The time it will take to complete the assessments will depend on the quality of the applications, ASIC said, as well as the other work the licensing team is doing.