The ATO and Centrelink must improve their online access arrangements to ensure financial planners can act on behalf of their clients, said the Financial Planning Association (FPA).
The FPA is calling for the changes as part of a raft of policy demands in the run-up to the May election.
Under the current arrangements, the ATO only allows one tax agent to be registered to access its online services portal on behalf of clients. As many clients also have an accountant, this stops the portal from recognising a financial planner as a client’s agent.
Developing better online engagement between government agencies and financial planners would help improve the process, said the FPA.
“We look forward to working with parties and stakeholders on policies and initiatives that contribute to affordable financial advice for all Australians and a sustainable financial planning profession for the future,” said FPA chief executive Sarah Abood.
Centrelink maintains a Provider Digital Access portal, but it has limited functionality, which leaves financial planners at a disadvantage, the FPA said. Improving online access arrangements would also reduce the administrative burden on Centrelink and the ATO.
The FPA also supports a recommendation of the Hayne Royal Commission to establish a compensation scheme of last resort, or CSLR, for the banking, superannuation and financial services industry.
A CSLR is designed to protect innocent victims of misconduct, but the FPA said more must be done to enhance the effectiveness of professional indemnity (PI) insurance in responding to compensation claims.
It also recommends planner education requirements and calls for the government to adopt an education framework and standards, including simplified pathways.
As a result of recent announcements and consultations, Ms Abood said, the profession has been left in limbo.
“After a flurry of proposals and announcements over the Christmas/New Year break, financial planners who had not yet completed their education under the current requirements have been left uncertain as to what to do.
“While we certainly recommend continuing these studies under the precautionary principle, it’s a significant commitment for many,” she said.
“We’re calling for both major parties to consult with the profession and clarify the details as to how any changes to current education requirements would be finalised and implemented.”
In relation to Treasury’s review of ASIC’s industry funding model, the FPA said it should report its findings before the freeze on ASIC levies charged for personal advice to retail clients expires.
The FPA also recommends regulators take more action on “finfluencers” to ensure that Australians only act on the advice of licensed, qualified and professional financial planners.
