The Parliamentary Joint Committee (PJC) reviewing the Tax Agents Services Act has been told the financial planning industry needs confirmation there will be no conflict between the implementation of TASA and the Future of Financial Advice (FOFA) changes.
The Financial Services Council (FSC) chief executive, John Brogden, was part of a united front representing the financial planning industry which urged a further extension in the implementation period for the TASA changes by between six to 12 months, with the Financial Planning Association (FPA) and the Association of Financial Advisers (AFA) delivering similar messages.
By comparison, the major accounting organisations have told the PJC that such an extension of the TASA implementation is not necessary and that to provide such a concession would undermine consumer protections.
The Shadow Assistant Treasurer, Senator Mathias Cormann, noted during yesterday's committee proceedings the strongly divergent views between the planning industry and the major accounting organisations.
Outlining an extensive FSC submission to the PJC, Brogden said his organisation estimated it would cost the advice industry $1 billion to meet the requirements of TASA and that it would be forced to do so at a time when companies were 110 per cent focused on compliance with respect to FOFA and Stronger Super.
The FSC has recommended 17 amendments to TASA in its submission to the PJC, including having the Australian Securities and Investments Commission (ASIC) amend the Best Interests Duty regulation to "enable an advice provider to comply with the Best Interest Duty safe harbour requirement in TASA".
"One amendment critical to the future of the advice industry is redefining what tax/financial advice services means under TASA," Brogden said. "The current definition is too broad and will impact anyone holding an Australian Financial Services Licence. This will include insurers, superannuation providers and even call centres."
The PJC is expected to produce a report in time for the Parliament to deal with the TASA legislation — and any recommended amendments — before it rises at the end of June for the last time prior to the scheduled 14 September, Federal election.
