FAR to display tax (financial) advice services from February
ASIC’s Financial Advisers Register will display whether a financial adviser can provide tax (financial) advice services from next month.
In a recent update, the Australian Securities and Investments Commission (ASIC) said that from 1 February 2023, ASIC’s Financial Advisers Register (FAR), published on Moneysmart, will display whether a financial adviser can provide tax (financial) advice services to retail clients.
From 1 January 2022, financial advisers who provide, or intend to provide, tax advice services to retail clients must meet the new requirements.
“Primarily, the new requirements are the completion of specified courses in commercial law and taxation law – some exceptions apply. Additional continuing professional development requirements also apply,” said ASIC.
“Financial advisers who meet the requirements are known as ‘qualified tax relevant providers’ (QTRPs).”
Generally, financial advisers who were registered with the Tax Practitioners Board as individual tax (financial) advisers at the relevant time are taken to be QTRPs on an indefinite basis, ASIC explained.
“ASIC wrote to each of these advisers and their respective AFS licensees notifying them of their QTRP status. ASIC also recorded on the FAR that these financial advisers can provide tax (financial) advice services, unless their AFS licensee has advised ASIC that they are not authorised to provide tax (financial) advice services,” it stated.
“This is the record that ASIC intends to display from 1 February 2023.”
If this information isn’t already recorded on the FAR, ASIC said that Australian Financial Services (AFS) licensees should notify ASIC before 1 February 2023 whether their financial advisers can provide tax (financial) advice services.
“This can be done by updating a financial adviser’s details using the ‘maintain’ function on ASIC Connect. There is no cost to notify ASIC of these details for the first time,” said the Corporate Regulator.
“Importantly, if ASIC is not notified whether a financial adviser can provide tax (financial) advice services by 1 February 2023, the FAR will not display whether the adviser can provide tax (financial) advice services. It is the responsibility of AFS licensees to ensure that the details recorded on the Financial Advisers Register about their financial advisers is correct.”
ASIC noted the requirements with respect to QTRPs are separate to those requiring financial advisers to be registered with ASIC by 1 July 2023.
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.