New regulation of financial advisers providing tax advice in Australia
From 1 July 2014, the Tax Practitioners Board (TPB) regulates financial advisers who provide tax (financial) advice services under the Tax Agent Services Act 2009 (Cth) (TASA). Until now, financial advisers have been exempt from the TASA regime.
Financial advisers will continue to be licensed (or authorised under an Australian financial services licensee) by ASIC and adviser obligations under the Corporations Act 2001 (Corporations Act) remain unchanged.
Until 31 December 2015, AFS licensees and their authorised representatives who provide a tax (financial) service can either:
notify the TPB to become registered as a tax (financial) adviser, or
use a relevant disclaimer when they provide tax (financial) advice services for a fee or other reward.
This option is the first phase of the progressive introduction of registration of tax (financial) advisers that will continue over the next three years.
Commissioner Greg Tanzer said, ‘ASIC and the TPB have been working cooperatively for many months to ensure the smooth transition of the new regulatory regime.
‘This has included sharing information from ASIC registers with the TPB to cut red tape and streamline the tax (financial) adviser registration process.’
ASIC and the TPB will continue to work together as the regime is implemented.
Source: ASIC
