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Note: This blog post has been written based on the assumption you have read the TASA Part I and TASA Part II blogs.
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) adviser.
What happens once the AFSL holder/AR is registered as a tax (financial) adviser?
- To financial advisers employed by the registered AFSL Holder/AR?
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 holder/AR.
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.
Remember:
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.
Still Confused?
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 circumstances.
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.
