FPA urges tax deduction for initial advice
The Financial Planning Association (FPA) has written to the Assistant Treasurer, Senator Arthur Sinodinos, making clear its concerns about grandfathering and the need for early clarity on the issue.
As well, the FPA has sought to leverage the fact that planners have been placed under the Tax Agents' regime to allow for a tax deduction for those receiving initial advice.
Amid media speculation that the Government might be prepared to move solidly on addressing the grandfathering issues, including to a position more flexible than that originally flagged, FPA chief executive Mark Rantall said his organisation's letter to the minister had outlined its key concerns.
"We have written to him outlining our major concerns regarding grandfathering, the need to implement the 16-point plan and allowing a tax deduction for [the provision of] initial advice, given we are coming under the Tax Agents regime," he said.
A number of dealer group heads have this week confirmed that mobility within the planning industry remains limited because of the continuing uncertainty around grandfathering and whether planners will lose their grandfathered status on pre-existing clients if they change licensees.
Senator Sinodinos is scheduled to address the Association of Financial Advisers (AFA) annual conference which begins on the Gold Coast this weekend and there is speculation that he may signal the Government's intentions on grandfathering.
AUTHOR
Mike Taylor
Recommended for you
Unregistered managed investment scheme operator Chris Marco has been sentenced after being found guilty of 43 fraud charges, receiving the highest sentence imposed by an Australian court regarding an ASIC criminal investigation.
ASIC has cancelled the AFSL of Sydney-based Arrumar Private after it failed to comply with the conditions of its licence.
Two investment advisory research houses have announced a merger to form a combined entity under the name Delta Portfolios.
The top five licensees are demonstrating a “strong recovery” from losses in the first half of the year, and the gap is narrowing between their respective adviser numbers.
