ASIC has released fresh guidance for providers of tax (financial) advice services following the introduction of the Financial Sector Reform Act 2021.
The act requires, among other things, that all financial advisers who provide personal advice to retail clients about relevant financial products be registered with ASIC by 1 January 2023.
Moreover, it requires that from 1 January 2022, financial advisers who provide, or intend to provide, tax (financial) advice services to retail clients for a fee must be a “qualified tax relevant provider” under the Better Advice Act.
According to the corporate regulator’s guidance, financial advisers providing tax advice will primarily be regulated by ASIC under the Corporations Act.
ASIC reminded that financial advisers who provide tax (financial) advice services are required to complete commercial law and taxation law courses unless one or more of the following transitional provisions applies:
- From 1 January 2022, relevant providers who were registered as individual tax (financial) advisers with the Tax Practitioners Board immediately before 1 January 2022 are not required to complete commercial law and taxation law courses.
- From the date the person’s registration with the Tax Practitioners Board as an individual tax (financial) adviser comes into force, relevant providers who applied to be registered as an individual tax (financial) adviser on or before 31 December 2021 (and whose application is subsequently approved by the Tax Practitioners Board) are not required to complete commercial law and taxation law courses.
- Between 1 January 2022 and 31 December 2025, existing providers who are also relevant providers (immediately before 1 January 2022) have until either their exam cut-off date (if they have not passed the exam), or 31 December 2025 (if they have passed the exam) to complete the required commercial law and taxation law courses.
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