The Bstar 2017/18 Accountants Research Report, conducted in partnership with BT Financial Group, is based on face-to-face discussions with 600 partners and senior professional staff within accounting practices from May 2016 to February 2017.

Securing an AFSL was ranked as a low concern for respondents this year, despite the survey being conducted before the deadline for the expiration of the accountants’ exemption, which allowed accountants to provide certain SMSF advice services without an AFSL.

Of the respondents, 71 per cent rated their need to act on the issue of licensing as low.

While government regulation more generally was rated as a ‘medium’ business concern, unsurprisingly, respondents felt they had little control over the issue.

Conversely, respondents also indicated a willingness to use SMSF services to boost their growth prospects in the Australian market.

The research found a ‘strong’ inclination that successful accounting practices moving forward will be focused on specialisation and advisory services.

Many of these firms chose to build specialist services in areas such as SMSF advice, financial planning and wealth management.

“Respondents are achieving growth by providing other services such as business advisory, SMSF, finance, financial planning, specialisation or forming a multidisciplinary practice,” the report said.

“These practices are at different stages in their implementation, but they are changing.”

Bstar’s chief executive Grant Bloxham earlier told SMSF Adviser that accounting practices with an AFSL in particular are looking to capitalise on the trustee market as what would’ve been traditional competitors choose not to operate in the AFSL environment.

“Practices that are licensed to provide these services are fully aware of the low number of licensed practices and are leveraging this opportunity by establishing a standalone SMSF division within their practice to create a point of difference and grow their financial services fee revenue,” Mr Bloxham said.