Advisers operating under the tax (financial) adviser regime from July 1 will still fall under the FOS umbrella, but the Tax Practitioners Board will also be able to apply its own sanctions.
Speaking to ifa, TPB chair Ian Taylor said that despite concerns aired by the financial planning industry during consultation on the Tax Agent Services Act (TASA) regime, the TPB has not established a memorandum of understanding (MOU) with FOS or the Credit Ombudsman Service.
"We’re not envisaging that we need an MOU with FOS or COSL. There will be cooperation between the organisations, and as part of the current processes where they refer something to ASIC it might then be referred on to us as well," said Mr Taylor.
While the TPB does not have the power to order clients be compensated (like FOS and COSL), it can apply certain sanctions which can be appealed in the Administrative Appeals Tribunal.
"These include a decision to place an order on somebody to do something – and that could be an education course – or we could suspend somebody, or we could terminate them," said Mr Taylor.
While there is no explicit agreement with FOS, Mr Taylor said his organisation is in the process of drawing up a MOU with ASIC.
"The [tax (financial) adviser regime] is a regime where entities are already registered with ASIC – and every AFSL and authorised representative is [currently] registered with ASIC," said Mr Taylor.
"The main basis of the MOU with ASIC is to deal with the sharing of information and working cooperatively with the two organisations," he said.
Under the agreement, ASIC will provide the TPB with "all of the information it has about AFSLs and authorised representatives" in order to make it easier for advisers to register and to "reduce red tape", said Mr Taylor.
Financial planners who provide tax advice can notify the TPB and become registered as tax (financial) advisers from July 1.
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