❗ ASIC Licensing, SMSFs & AI: The Compliance Trap Most Accountants Are Walking Into

Chris Abbott
Jul 3
2 min read

Hi, it’s Grant Abbott, your SMSF and Family Wealth Protection Strategist (and now AI evangelist too).

Let’s get straight to it.

Most accountants don’t realise that when a client walks in and asks, “Can you help me set up an SMSF to buy property?” — they’re potentially stepping into an ASIC compliance minefield.

And if you're not across ASIC INFO Sheet 216 or Reg 7.1.29(5)(d), you could unknowingly be giving unlicensed financial product advice.

🧠 What’s Really Going On?

The moment you:

Recommend setting up an SMSF,
Suggest rolling over funds into that SMSF, or
Give a strategic opinion that influences the decision to start an SMSF...

You’re likely giving financial product advice — which requires an AFS licence.

And yes, the exemption that previously applied to accountants was repealed in 2016.

✅ What You Can Still Do (Without a Licence)

There are carve-outs. Here’s what you’re legally allowed to do:

Provide tax advice, including structuring contributions.
Help establish an SMSF if the client has already made the decision (but you must document this).
Use platforms like LightYear Docs with built-in Reg 7.1.29(5)(d) warnings.
Advise on compliance issues such as investment strategies, sole purpose tests, and related party transactions.

💡 How My Strategist AI Helps

I’ve effectively cloned myself.

My Strategist AI (now in beta) contains:

All six of my SMSF books
200+ YouTube videos
Countless ATO rulings
ASIC guides like INFO 216
Relevant legislation

You can ask it real-world questions like:

“Can I give tax advice about setting up a pension in an SMSF?”

In seconds, it returns:

Plain-English compliance answers
Direct references to legislation
Strategic tips on how to handle the situation

🎯 Bonus: Audit Guidelines & ASIC Integration

We’ve just added SMSF Audit Guidelines and even deeper integration with ASIC’s compliance framework. You can now get accurate guidance on what accountants can or cannot do — within legal bounds.

📣 Want to Try It?

I’m currently offering 20 free beta spots with:

A 5-day free trial
Weekly walkthroughs
Full access to both SMSF and Family Wealth Protection Strategist AI tools

📩 Email: pedro@grantabbott.com

Compliance is no longer optional. With Division 296 and Intergenerational Transfer Taxes on the horizon, the advice you give today can make or break your client’s wealth tomorrow.

Let’s get ahead of it — the right way.

Grant AbbottFounder, Strategist AI & LY Legal