The Financial Planning Association (FPA) has been lobbying the Abbott Coalition Government in a bid to have the legislation enshrining the term ‘financial planner/adviser' re-birthed after it failed to make it through the Senate before the calling of the Federal Election.
FPA chief executive Mark Rantall confirmed that the organisation had raised the issue of the "enshrinement" legislation in discussions with the Assistant Treasurer, Senator Arthur Sinodinos, along with a range of other matters including linking planner adherence to the Tax Agents Services Act (TASA) to the tax deductibility of advice.
Speaking to Money Management, Rantall said the FPA remained optimistic and would continue pursuing the "enshrinement" issue with the Government.
The Coalition, while not opposing the enshrinement legislation when it was introduced to the Parliament by the former Minister for Financial Services, Bill Shorten, signaled that it did not believe it was necessary.
On the question of the tax deductibility of advice, he said the FPA believed that if advisers were to become tax agents consistent with the TASA requirements, it followed that there was a strong argument for the provision of initial advice to be made tax deductible.
Rantall said the FPA had been a part of the wide-ranging consultation processes with the Government on the Coalition's 16-point plan to amend the Future of Financial Advice (FOFA) legislation including the removal of "opt-in" and retrospective fee disclosure.
He said he believed Senator Sinodinos would be taking a suite of proposals regarding the changes to Cabinet in the next two weeks, with the consequent legislative and regulatory changes occurring next year.
