AIST argued that if funds are unable to provide a suitable intrafund advice service, this “materially impacts the effectiveness of the MySuper and Future of Financial Advice reforms”.
Responding to the Treasury discussion paper, Proposed registration requirements for registered tax (financial) advisers, released in June, the body also welcome the removal of the current requirement that registered tax agents must complete a basic accounting subject.
In addition to considering the application of intrafund advice, the Treasury approach for advisers who provide tax advice as part of a financial advice service which specifically caters to superannuation fund members’ needs should also ensure compliance costs do not adversely affect members’ needs, in order to ensure fairness across the membership base, the AIST stated.
The Treasury paper said an “overarching registration requirement” would be that the individual needs to be either a financial services licensee (as defined in Chapter 7 of the Corporations Act) or a representative of a financial services licensee (as defined in paragraph 910A(a) of the Corporations Act).
However, to provide flexibility, for example when an individual adviser switches employers, “it would only be necessary for the individual to meet this requirement at some point in the preceding 30-day period”, the Treasury paper stated.
This provides a balance between allowing individuals to change employers without having to re-register with the Tax Practitioners Board (TPB) and maintaining the integrity of the new regime, according to Treasury.
However, the AIST argued this requirement “is unnecessarily complicated, may be unenforceable and is unnecessary given the definition of a tax (financial) advice service” and recommended it be abandoned.
The AIST also recommended a TPB-approved bridging course in taxation law be developed in order to accommodate advisers who may have completed taxation planning subjects as part of diploma/advanced diploma programs.
The Treasury paper also said work experience requirements for tax (financial) advisers would be less than those for tax agents, and said it could commonly be gained under the supervision and control of a registered tax (financial) adviser or registered tax agent.
The AIST requested additional guidance as to what constitutes appropriate supervision for the purposes of work experience.
