The Financial Planning Association (FPA) has written to all members of the Federal Parliament underscoring the need to delay implementation of the financial planner elements of the Tax Agent Services Act (TASA) legislation.
The letter has been sent despite the fact the legislation was yesterday referred to a Parliamentary Joint Committee for review — after last Friday looking like it would be processed through the House of Representatives this week following the committee's rejection of holding such a review.
The legislation is still expected to go through the House of Representatives this week with any amendments being pursued via the committee process and the Senate.
The FPA letter has stressed the level of unknowns which still exist for financial planners, stating that "in our view the Bill is far from finalised and does not satisfactorily relate to the taxation advice provided in the context of financial planning advice".
The FPA letter claimed the most significant key outstanding issues included:
* a clear and appropriate definition of tax advice (financial product) service;
* whether the responsibilities and liabilities for the TASA obligations apply to the individual planner, a supervisor, or the licensee;
* alignment with the Best Interest Duty and other Future of Financial Advice (FOFA) reforms; and
* ASIC's role in the implementation of TASA.
"We are four weeks away from the existing deferral arrangements ending and we are still not clear on the exact requirements and obligations for financial planners in respect to complying with the Tax Agent Services Act, should this be required," the FPA letter said.
"Given the only possible sitting days to have this legislation passed by Parliament fall this month, there is no room for error. Considering that the Tax Agent Services Act will impact every one of our 9000 practitioner members, and likely more than 40,000 in total, the lack of consultation and the tight time frame is a real concern.
"This legislation should not be rushed through Parliament. The legislation does not address any systemic issues, and financial planners continue to be fully regulated by ASIC. The FPA is of the view that time must be provided to permit Treasury to undertake proper and effective consultation with stakeholders to ensure the outstanding issues in the Bill can be satisfactorily resolved," the letter said. "In order for this to occur, the FPA has formally requested a minimum extension of six to twelve months of the deferral arrangements."
