The major accounting groups have grudgingly accepted the manner in which the Tax Agents Services Act (TASA) legislation was amended to allow financial planners a further 12 months before they need to comply with the regime.
The amendments, negotiated by the Federal Opposition, ensured the legislation passed the House of Representatives – and were achieved despite strong lobbying on the part of CPA Australia and the Institute of Chartered Accountants (ICAA) seeking that financial planners be immediately covered by the new arrangements.
However, Institute general manager of leadership and quality Yasser El-Ansary said that while the delay to the start date of the scheme for planners by 12 months to 1 July 2014 was disappointing, the passing of the legislation was the overriding objective.
“After three years of consultation and development, it is now time for this safeguard to take its place in law. This legislation protects the public interest, and that’s the bottom line,” he said.
In a joint statement issued yesterday, CPA Australia and the ICAA said, “the new regulatory framework will require financial planners to comply with more robust academic, competency and ethical requirements”.
Hardly surprisingly, the amendments negotiated by the Coalition and outlined in a letter from the Assistant Treasurer, David Bradbury, to his Opposition counterpart, Senator Mathias Cormann, were broadly welcomed by the major financial services industry groups, with the Financial Planning Association (FPA), the Association of Financial Advisers (AFA) and the Financial Services Council (FSC) all welcoming the outcome.
FPA chief executive Mark Rantall noted, however, that work remained to be done to ensure that the amendments were appropriately reflected in the final outcome.
AFA chief executive Brad Fox said his organisation was pleased that common sense had prevailed. He acknowledged the support of the Coalition and the Independents, as well as the FSC and the FPA in collectively lobbying on the issue.
He said that, in particular, the AFA welcomed the extension of the current exemption for financial advisers from TASA until 30 June 2014 – something that was essential given the regulatory overload with which the industry was already dealing.
FSC chief executive John Brogden said the outcome have given his organisation time to work with the industry to develop training and education programs for advisers to meet the TASA competency requirements, and to make the necessary administrative changes to comply with the new law.
“The Assistant Treasurer, David Bradbury, and Assistant Shadow Treasurer, Mathias Cormann have been instrumental in a pragmatic outcome for TASA,” Brogden said.
