ASIC updates FAR following tax agent changes

Following the commencement of the Treasury Laws Amendment (2023 Measures No. 3) Act 2023, which was passed in early September, some of the requirements on financial advisers who are both a relevant provider and a registered tax agent to satisfy the definition of a “qualified tax relevant provider” have been removed.

In order to be recognised as a qualified tax relevant provider, financial advisers previously needed to meet the requirements of Division 3 of Part 3 of the Corporations (Relevant Providers—Education and Training Standards) Determination 2021 (Relevant Providers Determination).

Namely, financial advisers who are both a relevant provider and a registered tax agent also needed to complete specified courses in commercial law and taxation law. Under the recently passed amendment, this will no longer be required.

“ASIC will make a one-off update to the Financial Advisers Register on Friday, 3 November to record that individuals who are both a relevant provider and a registered tax agent on 20 September 2023 can provide tax (financial) advice services to retail clients on relevant financial products,” the Australian Securities and Investments Commission (ASIC) said in a statement on Tuesday.

“ASIC has written to affected individuals and their AFS licensees in October 2023 regarding the one-off update.

“AFS licensees can update the details of the relevant providers that they authorise using the ‘maintain’ function on ASIC Connect. There is no cost to notify ASIC of whether a relevant provider can or cannot provide tax (financial) advice services for the first time.”

The corporate regulator stressed that it is the responsibility of AFSLs to ensure that the information recorded on the Financial Advisers Register (FAR) about their relevant providers is correct.

In January, ASIC announced that the FAR would display whether an adviser can provide tax (financial) advice services to retail clients beginning in February 2023.

The regulator said that AFS licensees should notify it before February if their financial advisers can provide tax (financial) advice services and this information is not already recorded on the FAR published on Moneysmart.

“Importantly, if ASIC is not notified whether a financial adviser can provide tax (financial) advice services by 1 February 2023, the FAR will not display whether the adviser can provide tax (financial) advice services,” ASIC said at the time.

“It is the responsibility of AFS licensees to ensure that the details recorded on the Financial Advisers Register about their financial advisers is correct.”