Our report on upcoming changes to ASIC’s Financial Adviser Register generated most interest from advisers this week, as the industry awakens from its festive season slumber…
ASIC has announced that from February 1, the Financial Advisers Register (FAR) will display whether a financial adviser can provide tax (financial) advice services to retail clients.
This move reflects new requirements for advisers who provide, or intend to provide, tax (financial) advice services to retail clients, which came into effect on 1 January, 2022. Those new requirements are:
- Completion of specified courses in commercial law and taxation law (some exceptions apply)
- Additional continuing professional development requirements
Financial advisers who meet these requirements are known as ‘qualified tax relevant providers’ (QTRPs).
However, financial advisers who were registered with the Tax Practitioners Board as individual tax (financial) advisers at the relevant time are taken to be QTRPs under transitional arrangements. ASIC has notified these advisers and their respective AFS licensees of their QTRP status, and has applied this information to the adviser’s FAR record.
If an adviser’s QTRP status hasn’t already been recorded on the FAR, licensees must notify ASIC before 1 February 2023 by updating the adviser’s details on ASIC Connect.
…it is the responsibility of AFS licensees to ensure that the details …about their financial advisers is correct
If the adviser’s status is not updated by 1st February, the FAR will not display whether the adviser can provide tax (financial) advice services. ASIC has warned that “…it is the responsibility of AFS licensees to ensure that the details recorded on the Financial Advisers Register about their financial advisers is correct”.
More information can be found on ASIC’s website.
