As discussed in earlier blogs, from 1 July 2014, an AFSL holder
or Authorised Representative (AR) who is providing a 'tax
(financial) advice service' can notify the Tax Practitioner
Board (TPB) it is providing these services. On the day it notifies
the TPB, it is deemed to be registered as a tax (financial)
What happens once the AFSL holder/AR is registered as a tax
To financial advisers employed by the registered AFSL
Financial advisers employed by a registered AFSL holder/AR can
provide a tax (financial) advice service for at least the duration
of the notification and transition period without being registered
themselves. This is on the condition that they provide the advice
in the name of their registered employer –
just like an SOA will be issued in the name of the AFSL
Once the notification period has finished, employee financial
advisers who provide tax (financial) advice are eligible to
register as a tax (financial) adviser. There is a clear incentive
for employees to register as a tax (financial) advice
representative during the transition period as they will not need
to meet the education requirements.
To the AFSL Holder/AR?
As discussed above, a registered AFSL holder/AR can provide tax
(financial) advice through its employees and/or directors during
the notification and transition period.
Sufficient number requirements?
If an AFSL holder or AR registers after 30 June 2017, or renews an
expiring, 'deemed' registration, it must, amongst other
things, have a 'sufficient number' of employees and/or
directors who are registered as tax (financial) advisers.
Keep in mind that no employee can be registered as a tax
(financial) adviser until 1 January 2016.
From 1 July 2014, until your AFSL holder or AR is registered to
provide a tax (financial) advice service, you will need to use the
disclaimer set out in
TASA Part II.
Providing a tax (financial) advice service without meeting the
above requirements is an offence. Individuals can be fined up to
$42,500; corporations can be fined up to $212,500.
As you can see, the TASA regime is complex and its application
is, in-part, dependent on how your licensing arrangements are
structured. We are happy to provide specific advice on your
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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In the years following the global financial crisis of 2008 many Australian investors lost their life savings as financial products failed and the Australian Stock Exchange shed over 3,000 points.
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