The Bill will see financial advisers who provide tax advice ultimately be compelled to register with the Tax Practitioners Board, though these advisers will be given a 12 month implementation extension, following amendments moved by assistant treasurer David Bradbury last week in response to industry and opposition pressure.
Several senators including shadow minister for financial services Mathias Cormann and independent South Australian senator Nick Xenophon rose to speak about the lack of due parliamentary process on the Bill.
Financial Services Council chief executive John Brogden estimates that the changes will cost the financial advice industry $1 billion in compliance costs.
maybe a physcology or degree in politics ?
What next? What about a law degree?!
Think about it…
All advice – accounting, financial etc. must comply with the Law. Based on the reasoning that financial advice must meet TASA, will the regulators and law societies insist accountants and financial advisers have a law qualification?!
Nothing like life-long learning or rather having to study for the rest of your life!
I think many will follow, the TASA requirement is such an unknown thing. No one knows what the requirements entails, yet . The FPA and AFA only know in general terms. I spoke to a IFA this morning who is going to change dealer groups to get a better deal on dealer group fees, as he cant see how he is going to survive and pay his staff. The dealer is taking too much, no matter how good the information and dealer service is. Survival is kicking in. The dealer groups are in big trouble now because they have lost the monopoly of controlling advisers income as the Adviser controls the client relationship and the client pays the adviser. The clients clients are asking “why are we paying a third party not you?”, Spoke to another who is getting on with client service and ignoring the hooha. Spoke to a real estate agent (client) this morning hes shaking his head in dismay & pity
Heard an adviser give up FP today…too much stress keeping up with compliance and clients on track….a victim of Gillard’s reality. Clients lost out. How many more will follow him?
Thanks jason, its is rubbish, The education course floggers are rubbing their hands together in greedy glee. But spare a thought for those financial planners suckered into becoming, DFP, ADFP and CFP (which they can only call themselves “Certified Financial Planners” if their principal is a member of the FPA). The CFP qualification is really worthless because they all now have to become tax agents as well, just to survive. No exemptions. The licensees havn’t got a clue, they all running around this morning like headless chickens wondering what they are going to tell their AR’s. Sorry boys and gals, more study! Clients will have to be charged more, can’t think what the PI premium will look like next year with probably less advisers and more risks!! The consumer is the big loser, the only survivors will be the ISN, Banks, stockbrokers, and few large groups. Exactly the result the Gillard-Rudd government wanted. All AR’s should be outraged.
Steve and Sam
you guys see through the rubbish unlike some other people on posts who cant comminicate and see the true impact and cost to clients
we are watching socialism and red tape at its best. I was in discussions with a accountant and lawyer today at s function and they cannot believe how we will survive going forward. Now people are sucked in to Rudd so Isn market will have a cruise ride while we diminish
Steve. You absolutely spot on. The course floggers will have another field day conning advisers and their licensees to purchase their course. The FPA and AFA have blood on their hands not vetoing this. WHAT ARE THEY DOING? Bleeding the poor advisers of more money. But will the Industry Super Fund telephone salesman promoting the their own Industry Super Fund have to comply. Probably Not there will be some work around con job exempting ISN from complying with the law as they don’t “give advice”. Meanwhile the consumer continues to be dumbfounded who to believe.
steve you are spot on its all about self interest not the consumer/client
Meanwhile back at FPA & Kaplan’s head quarters………the spin doctors are thinking up new WEAPONS OF MASS DESTRUCTION fear tactics to get another 5 year run out of the old course flogging. Marketing pointless, substandard, templated, cliche online text books at $800+ a pop per subject. Yes…..they should be able to sell a few more gas mask & bomb shelters post fofa to the advice community. They will have a new clueless government in October that they can convince the old govt just didnt do enough, and surprise surprise…….more education is the answer! Ca Ching……. Ca Ching.
More costs, more costs, more costs to be passed onto the consumer, don’t worry the consumer will pay, Wont they? Advice will get priced out of reach of the average person.
A progressive party ?
Rather than getting angry with the government why not turn your attention to the professional associations who collectively thought they would lobby the government to remove the licensing exemption that enabled accountants to provide SMSF advice…the FPA, AFA and FSC managed to wake the slumbering giants in the corner of the industry (the CPAs and ICAs)…now they have a limited license on the way and the planners have to register with the Tax Practitioners Board…the associations should be more careful what they wish for…
Only another $billion in costs to be passed on to consumers?
Wow, this Government’s reforms have provided awesome cost savings! Really meeting the goals of making advice more available and affordable.
They’ve just gone MAD.
yep, just keep bringing in more and more legislation and compliance to the point where a financial planner becomes fully responsible and liable for the customer forgetting to pick their kids up from school.