The Tax Practitioners Board (TPB) has released information on a notification option for becoming registered as a tax (financial) adviser. Under the notification option, there are no application fees payable, individuals do not need to meet education and experience requirements, and partnerships and companies do not need to meet the sufficient number requirement. The Board said that in June 2014, it will write to all AFS licensees registered with ASIC to provide information on how they can notify to become registered with the Board. It said AFS licensees should notify on behalf of authorised representatives.
Once notified and registered, the Board said the entities must comply with the fit and proper person requirements, adhere to the Code of Professional Conduct, maintain PI insurance that meets the Board’s requirements, and advise the Board of any changes in details and circumstances. The Board noted the registration period is longer for those that notify earlier, which means earlier notifiers will have more time to make sure they meet the standard eligibility requirements when they renew their registration. For those that notify between 1 July to 31 December 2014, their registration will expire on 31 January 2018.
The Board said that from 1 July 2014, AFS licensees and authorised representatives who do not notify it (and therefore are not registered with the Board) will need to provide a disclaimer when providing a tax (financial) service advice. The disclaimer needs to advise that they are not a registered tax (financial) adviser, and if the client intends to rely on the advice they should request advice from a registered tax (financial) adviser or a registered tax agent. The disclaimer will only be effective until 31 December 2015.
Note the Board has recently issued 3 draft tax (financial) adviser policy documents for consultation.
[LTN 49, 13/3/14]