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.
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