What issues are advisers going to face in 2025?

Aaron Dunn, CEO of Smarter SMSF, said there is still a lot happening in regard to the Compensation Scheme of Last Resort (CSLR) and it is one area that financial advisers will have to continue to watch in the coming months.

“We don't necessarily see a light at the end of the tunnel yet, so I would argue that it will be again, front and centre in 2025 for advisers,” Dunn said.

Dunn continued that the Delivering Better Financial Outcomes (DBFO) reforms will also be a hot topic, and that many of the issues that have been raised through Tranche 1 and the updates around the new class of adviser that was released in draft form towards the end of last year will be up for debate and discussion.

“We know the SMSF Association has put a stake in the ground in terms of the role that accountants can play and their exclusion [in the new class of advisers],” he said.

“And we also know what Labor was looking to do in providing internal advice channels to be able to support that as well, but there is still a lot of water to go under the bridge when it comes to opening up advice to Australians more broadly.”

In December, the SMSFA argued that not utilising accountants to plug the advice gap is a missed opportunity.

SMSF Association CEO Peter Burgess said that considering the government was focused on creating a new class of advisers to provide safe and simple advice, it remains a mystery as to why the role other professional advisers could play, such as accountants, was still being overlooked.

“It was our contention that the Quality of Advice Review neglected the significant role accountants can play in addressing the growing advice gap, and the government is perpetuating this oversight,” he said.

“By giving accountants a defined advice role, it will further support consumers to access the advice they need when they want it from their choice of trusted adviser.”

Additionally, Dunn said the definition of wholesale versus retail clients and the test that is proposed will also continue to be an area of controversy in 2025 and one which those in the SMSF sector will be paying close attention to.

He said advisers will need to be mindful of how their clients may be classified for the purposes of their SMSF and the application of wholesale client tests.

“We haven't had a real outcome from this [wholesale client test]. We don't know what's going to happen with the wholesale investor test,” Dunn said.

“It's the clarity that's really needed on these because those tests are very much outdated in terms of the role they're playing today, and there is a real level of confusion as to what test applies in what circumstances.

“The greater the clarity we get on what assets do and don't get included for the purposes of what is currently $2.5 million and $10 million and how they need to be applied across different individuals and structures and so forth, and the sooner we get resolution on that ultimately is going to be better for everyone involved.”