ASIC fixes full AFSL regulatory anomaly
The Australian Securities and Investments Commission (ASIC) has moved to clear up an anomaly around accountant licensing clarifying the ability of full Australian Financial Services License holders and their authorised representatives to provide tax exempt advice.
The regulator said it had amended ASIC Corporations (Recognised Accountants: Exempt Services) Instrument to address a clear regulatory anomaly.
It said the amendments would have the effect of enabling full AFSLs and authorised representatives with limited authorisations to provide exempt tax advice in relation to financial products not covered by their AFS licence.
ASIC said the amendments meant that full AFS licensees were not disadvantaged in relation to advice on taxation issues compared to limited licensees (i.e. those who are licensed to provide a limited range of financial services relevant to SMSFs) or those without any AFS licence.
ASIC acknowledged that it had felt compelled to make the amendments when it discovered that full AFSLs had been disadvantaged as a result of an unintended consequence of its regulatory treatment of limited licenses.
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