Financial advisory and taxation services update

Key Points

  • The Australian Professional & Ethical Standards Board has tabled APES 230 Financial Advisory Services
  • Institute Head of Financial Planning Hugh Elvy has attended the second meeting of Treasury’s Future of Financial Advice Peak Consultation Group
  • The Assistant Treasurer has pushed out the application of the Tax Agent Services Regime to financial planners to July 2011.

At its meeting on Wednesday, 17 November 2010, the Australian Professional & Ethical Standards Board (APESB) met and was provided with an update by its technical staff on APES 230 Financial Advisory Services  and the status of submissions received by the Exposure Draft process.

The Institute understands that the APESB will be issuing a communication in the near future concerning the approach it intends to take towards the ongoing development of the standard.

In October, we issued a joint submission to the APESB on APES 230 Financial Advisory Services in which we recommended that the government’s Future of Financial Advice reforms be allowed to progress before setting a pragmatic timeframe for changes to standards for our members who offer financial advisory services.

One of the main drivers for this position was to avoid duplication in the regulatory landscape.

Future of Financial Advice reforms

On Friday, 19 November 2010, Institute Head of Financial Planning Hugh Elvy attended the second meeting of Treasury’s Future of Financial Advice Peak Consultation Group, with a further meeting scheduled for December.

Mr Elvy is one of two professional accounting representatives in the group tasked with driving recommendations to the government on the financial advisory services reforms.

The accounting profession will be meeting with Treasury, the Minister’s office and the Australian Securities and Investments Commission (ASIC) in the next couple of weeks to discuss an appropriate replacement for the accountants’ exemption.

At the previous meeting with Treasury, the Joint Accounting Bodies provided an initial policy paper Financial advisory and taxation services in Australia. As the Future of Financial Advice reforms progress, the accounting profession will continue to provide input into the development of a replacement for the accountants’ exemption and other areas of these reforms.

Tax Agent Services Regime

On Monday, 1 November 2010, the Assistant Treasurer announced that he would push out the application of the Tax Agent Services Regime to financial planners to three months later than his original timeline, to July 2011.

The Institute’s position is that anyone involved in the delivery of taxation services to the public should be subject to the same rules.

Delaying a decision on this issue casts doubt on the original objectives of the legislation. The Institute presented this position publicly in a media release.

The Institute will communicate further developments on APES 230, the Future of Financial Advice reforms and the Tax Agent Services Regime to members as they occur.

Article last updated 24 November 2010