How financial planners who offer tax agent services are regulated is the focus of an options paper released today by the Assistant Treasurer and Minister for Financial Services and Superannuation, the Hon Bill Shorten MP.
Financial planners, including those who offer some tax agent services, are currently regulated through the ASIC administered Australian Financial Services Licence. Tax agents, on the other hand, are regulated through the tax agent services regime administered by the Tax Practitioners Board.
There are approximately 18,000 financial planners in Australia, many of whom provide a tax agent service within the context of providing financial advice to clients.
The paper, Regulation of Tax Agent Services provided by Financial Planners, puts forward options to ensure financial planners who offer tax agent services are regulated effectively.
"This options paper gives interested parties the opportunity to constructively engage in consultation with the Government on the best way to regulate tax agent services provided by financial planners," the Assistant Treasurer said.
"I understand this issue has raised a lot of interest in the financial planning and tax agent industries. The Government is keen to ensure the regulatory option that is ultimately adopted protects consumers, ensures the integrity of the regulatory systems for taxation and financial services, and does not place an unfair burden on industry."
The paper presents two options for consideration:
-
Option 1 - bring tax agent services provided by financial planners permanently within the tax agent services regime and be regulated by the Tax Practitioners Board, but do so in a way that minimises any additional compliance burden.
-
Option 2 - investigate and implement what changes, if any, might be made to the Australian Financial Services Licensing regime or its enforcement to ensure financial planners offering tax agent services are regulated to the same standards imposed on tax agents.
"Feedback from industry and other stakeholders will significantly assist in developing the best regulatory option. I encourage interested parties to make a submission. We will also consult with specific industry spokespeople to arrive at the best possible solution, " Mr Shorten said.
Copies of the options paper are available at www.treasury.gov.au and consultation closes on 25 December 2010