Changing regime for tax (financial) advisers
The Government agreed to introduce a single disciplinary body for financial advisers following a review of the current systems and a recommendation by the Financial Services Royal Commission. The Royal Commission identified gaps in addressing misconduct by financial advisers due to various pathways that exist now for consumer complaints.
The Independent review of the Tax Practitioners Board (TPB) also recommended that, in alignment with the Royal Commission’s recommendation, a new model for regulating tax (financial) advisers be developed to reduce the regulatory overlap.
The Government introduced a Bill for the new disciplinary system for financial advisers into Parliament on 24 June 2021 - Financial Sector Reform (Hayne Royal Commission Response—Better Advice) Bill 2021.
What would the passage of the Bill mean for tax (financial) advisers?
From 1 January 2022 financial advisers who provide tax (financial) advice services for a fee will no longer need to register with the TPB as a tax (financial) adviser.
The Financial Services and Credit Panel within the Australian Securities and Investments Commission (ASIC) will operate as the single disciplinary body for financial advisers. All financial advisers who provide personal financial advice to retail clients will need to be registered with the new body.
Financial advisers will need to meet additional education and training standards set by the Minister (if any) to provide tax (financial) advice services for a fee under the new regime.
An adviser can also provide tax (financial) advice services for a fee if they are a registered tax agent.
Existing tax (financial) advisers and deemed registration
The TPB will only be able to accept registration renewal applications up to and including 31 December 2021.
If you are a registered tax (financial) adviser with the TPB as on 1 January 2022, you will be deemed to be registered with ASIC until your TPB registration expires.
Frequently asked questions
We have put together some questions to help you understand the changing regime and how it affects your registration.
- Financial Services Royal Commission - Final Report
- Review of the Tax Practitioners Board – Final Report
Last modified: 16 July 2021