This week the Government and ASIC have made two key announcements concerning the future of advice.
- Increasing education standards for new and existing advisers
- Financial advisers and the scope taxation advice
Together with FoFA these proposed changes will impact the landscape of advice in this country. The AFA is well placed to ensure that these changes are appropriate and will work to ensure that the implementation is as effective as possible.
RG 153 : Advisers and Education RG 153
ASIC proposes amending the assessment and professional development framework for financial advisers by requiring:
- all new and existing financial advisers who provide Tier 1 financial advice to pass a Financial Services Competency Certification exam to ensure they have the requisite competencies to perform their role. (‘Entry Stage’)
- all new financial advisers following Entry Stage to be supervised by a supervisor (who has at least 5 years experience in the industry) for a minimum period of 1 year full time or equivalent;
- all financial advisers to undertake a Knowledge Update Review every three years on changes to laws, market issues and new products; and ongoing continuing professional development requirements.
Future Regulation of Financial Planners Providing Tax Advice
- The scope of services that can be provided by financial planners is determined according to the type of registration held.
- A financial planner can provide general factual tax information (not tax advice).
- If a financial planner has an additional form of registration, they can provide tax advice within the context of providing financial advice. The scope of tax advice that will be permissible within this category will depend upon the competencies that are required.
- Tax agents registered under the Tax Agent Services Act 2009 provide full tax agent services including preparing or lodging returns or representing a taxpayer in their dealings with the Commissioner of Taxation.