Call for single planner regulatory regime

financial services council FSC Tax Practitioners Board TPB association of financial advisers AFA smsf association regulation FASEA

5 July 2019
| By Mike |
image
image
expand image

There should be a single regulatory and oversight regime for financial advisers, according to the Financial Services Council (FSC).

The FSC has used a submission to Treasury’s review of the Tax Practitioners Board (TPB) to argue for a simplification of the regulatory environment in circumstances where the so-called “Tax Financial Adviser’ (TFA) regime predicated the establishment of the Financial Adviser Standards and Ethics Authority (FASEA) and other changes to the industry.

It said the Treasury review of the TPB therefore provided an important opportunity to align and streamline the two regulatory regimes applicable to financial advisers into a single regime for the benefit of financial advisers and consumers.

In doing so the FSC echoed at least some of the views of both the Association of Financial Advisers (AFA) and the SMSF Association which had both pointed to the problems and costs associated with regulatory overlap.

“We believe that a single regulatory regime, which incorporates TFA requirements into the FASEA regime, benefits consumers and advisers alike,” the FSC submission said. “It provides consumer clarity and confidence that they need only engage with the FASEA regime should they have any concerns in relation to professional conduct breaches (instead of dealing with two separate bodies for the same advice) and reduces the regulator overlap and cost inefficiencies that arises from having two very separate but overlapping regimes.”

“We recommend that the TFA requirements be incorporated into the FASEA regime. Further consultation can identify the best way to incorporate TFA requirements and establish an ongoing TPB and FASEA engagement framework,” it said.

The FSC submission said the rationale for consolidating TFA requirements into the FASEA regime was further supported by the consideration that all financial advisers are subject to the FASEA regime but not all financial advisers are TFAs.

“As such, it makes sense to consolidate the TFA regime into FASEA such that the requirements apply to all advisers,” it said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Interesting. Would be good to know the details of the StrategyOne deal....

3 days 23 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 2 days ago

increased professionalism within the industry - shouldn't that say, FAR register almost halving in the last 24 months he...

4 weeks 1 day ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 3 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

2 days 22 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

2 days 1 hour ago