TPB adding to adviser woes says AFA

The financial advice sector would be being singled out for different treatment to other professional sectors if the Tax Practitioners Board (TPB) moved to force specific client approval for tax advisers to move them to a new adviser.

That was the assessment of the Association of Financial Advisers (AFA) in a submission responding to a TPB practice note dealing with proposed changes covering the transfer of business including a letter of engagement.

“We are not aware of any other profession (doctors, lawyers, accountants, dentists, physiotherapists, chiropractors etc) that requires positive client consent as part of the sale or transfer of a business,” the AFA submission said. “Moving to a model of positive and specific consent from each client would have a very material impact upon the financial advice profession and put at risk the clients of financial advisers.”

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The AFA also pointed out that the TPB’s proposal was being put forward at the same time as a large number of financial advisers were being forced to change licensees and when a substantial number were considering their intention to remain in the financial advice profession.

The AFA submission said that the proposal from the TPB along with the Letter of Engagement proposal was likely to have a further material negative impact upon the viability of the financial advice sector.

“It will also likely serve as an additional impost on clients who are already required to complete a raft of declarations and red tape, and possibly discourage them from continuing their advice relationship,” it said.

“To put it plainly, there are many financial advisers across Australia who are currently struggling and in elevated states of distress and anxiety. This proposal, and the likely consequences in terms of the valuation of financial advice businesses will add to the mental health issues that are now impacting the financial advice profession,” the AFA submission said.

“In our view, what has been proposed is excessive and is being proposed at the worst possible time for the financial advice sector.”




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TPB = FEE FOR NO SERVICE>

This is just another kick while we are down.
Is this Proposal being extended to all the Accountants? No!! Why!!
Oh Wait ,They would scream to heavens if this was imposed on them.
Yet again government departments not talking to one another and not understand the man on the ground.

Please can we just be rid of the TPB? I am sick and tired of paying fees to people that don't make my life better, in fact they make it worse. These guys are laughing they just increased this membership substantially through no work of their own. Backslapping all around! They just sit there and take the membership fees and come up with stupid ideas like this. Surely one industry can have one well funded body that oversees them, why the need for 4 or 5? These agencies clipping the ticket just so that we can have a letter on the wall, they are no benefit to us at all, nothing, nada, not one iota, not even a offer of an annual review or a newsletter! I mean cmon where is our fairness? Its beyond belief that we need to pay this membership fee.

“We are not aware of any other profession (doctors, lawyers, accountants, dentists, physiotherapists, chiropractors etc) that requires positive client consent as part of the sale or transfer of a business,”

If the above is true, then it is blatantly unfair that financial advisers need the clients approval prior to the transfer.

Gee the FPA has been fabulous for advisers, especially now with a former key player now on FASEA advocating accountants over FPs. Get rid of the FPA so you have a chance

Zero common sense coming from public servants yet again. What they are suggesting amounts to a business having to get the consent of its customers to sell its own business. Total Regulation Insanity.

ARE YOU KIDDING ME? = NFI>

There is absolutely no good reason for the TPB to exist. Jane Hume needs to shut it down right now. It's an unnecessary layer of bureaucracy that is just adding to business complexity and ultimately to consumer costs.

I'm waiting .....
"Scott Morrison flags Trump-style economic plan in pledge to cut more red tape"

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