Advisers get ready for havoc

by |

The Parliamentary Joint Committee (PJC) has provided its report with the list of recommendations to amend TASA, which did not include any significant changes.

The FPA and FSC have expressed their disappointment at the result, which will mean that planners are required to include a disclaimer on advice documents from 1 July.

FPA CEO Mark Rantall says there is still significant detail to be worked through. “We believe, as an example, the regulatory requirement issued by Treasury today for a higher level study of Commercial Law, is excessive when added to Tax Law course. A 12 month extension of the exemption is appropriate whilst we continue to work with Treasury, ASIC and the Tax Practitioners Board to finalise this legislation.”

The FSC made 17 recommendations in its submission to the PJC. FSC CEO John Brogden says, “The PJC recommends no changes to the legislation at all. This is despite very clear evidence from the FSC, AFA and FPA that the TASA legislation will create havoc for financial advisers.”

The PJC recommended that ASIC and the Tax Practitioners Board consider amending RG 175 on Best Interest Duty, as advocated for by the financial services associations, to enable advisers to comply with the Best Interest Duty safe habor requirement in TASA.

The FSC has called for tax financial advice services under TASA to be redefined, saying the current definition is too broad and will impact anyone holding an Australian Financial Services Licence. This includes insurers, superannuation providers and even call centres.

More stories:

Advisers face catch 22 hurdle

Advisers may become PI target

Griffith to boost industry reputation

  • Peter Johnston - AIOFP on 18/06/2013 11:17:01 PM

    Believe it or not i agree with Matthew! Just been to a TASA meeting today with all the Associations and it certainly appears the 'sky will not fall in' and a pragmatic approach will be achieved.Yes it is a last minute 'Shorten shuffle' on the surface to get the donations from the industry funds, but the realistic approach of the TPG will out live this pathetic Government.

  • Matthew lock on 18/06/2013 11:05:41 AM

    Here we go again…the industry associations screaming blue murder…Definition from Wikipedia - A professional association (also called a professional body, professional organization, or professional society) is usually a non-profit organization seeking to further a particular profession, the interests of individuals engaged in that profession, and the public interest. Clearly both the FPA and FSC are doing a bang up job on the first 2 criteria but continuously failing on the last (the public interest)...isn’t it about time these bodies stopped solely representing the interests of the minority of their members who have dead or dying business models and work together with the majority of their members and the regulator who want the industry to evolve into a new advice profession…they have fought every step of the way to hold back the industry from becoming a profession and if they can’t get on board they should move out of the way for a new association that will.

  • Alan on 18/06/2013 10:19:08 AM

    Terry E., perfectly summed up. My only real comment, bring on the election to end the madness.

  • Terry E. on 18/06/2013 9:52:03 AM

    Just another example of the incompetency of the legislators, who at the behest of the master pupeteer Shorten and his so called independent allies, totally ignore the practicalities of what they are implementing.
    Another example of ramming through legislation while they have the numbers, before they get decimated later this year.

    Yes let's now include more disclaimers in our SOA's, which clients will necessarily choose to not read.

WP forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Name (required)
Comment (required)
By submitting, I agree to the Terms & Conditions