Policy news
Get the latest news from the FPA policy team on issues directly affecting financial planning professionals. The FPA works consistently and relentlessly with Government, regulators and the media to represent the interests of our members.
LATEST NEWS 25 March 2013 TPB releases proposed competency requirements for planners The Tax Practitioners Board (TPB) has released a proposed TPB Guideline of courses in Australian taxation law for financial planners that are approved by the Board. The proposed Guideline outlines the TPB’s approach to the educational eligibility requirements for financial planners to register with the Board. It includes information relating to the course topics and learning outcomes, duration, course providers, education level, manner of delivery, assessment and currency. Note: The amendments to the Tax Agent Services Act (TASA) are yet to be tabled in Parliament. Therefore, no additional education or qualification competency requirements will be needed at this time. Read the proposed TPB Guideline (TPB(PG)D04/2013) here If you have any feedback on the proposed TPB Guideline, please email policy@fpa.asn.au
20 March 2013 Enshrinement of the term 'financial planner' - Bill tabled in Parliament Today the Government tabled in Parliament legislation that would enshrine the use of the terms ‘financial planner’ and ‘financial adviser’ into law from 1 July 2013. Whilst this is an historic and significant achievement for the financial planning profession in Australia, the tabling of the Bill is only the commencement of the Parliamentary process to enshrine the terms in law. The Bill must be debated and voted on by the members of the House of Representatives (HoR). Assuming the Bill is not referred to a HoR Committee or opposed by MPs, it will then proceed to the Senate for debate and vote by all Senators. The FPA is hopeful of a speedy progression through Parliament, however this process can take time. The Bill may not receive the Royal Assent required to become law until future sitting periods of Parliament. Whilst this is an historic and significant achievement for the financial planning profession in Australia, the tabling of the Bill is only the commencement of the Parliamentary process to enshrine the terms in law. The Bill must be debated and voted on by the members of the House of Representatives (HoR). Assuming the Bill is not referred to a HoR Committee or opposed by MPs, it will then proceed to the Senate for debate and vote by all Senators. The FPA is hopeful of a speedy progression through Parliament, however this process can take time. The Bill may not receive the Royal Assent required to become law until future sitting periods of Parliament. If you have any policy related questions, please email policy@fpa.asn.au.
Our updated 'FoFA at a glance' summary is now available to download. Read our recommendations to Government and find out how these recommendations have helped shape the FoFA reforms.
1 March 2013 ASIC release Regulatory Guide on approval of Codes ASIC has released their updated Regulatory Guide on approval of Codes (RG183). This regulatory guide sets out how ASIC will approve codes of conduct. The updates made to the ASIC Regulatory Guide include: Download the Regulatory Guide RG183
As per the Minister’s previous announcement, this process for financial planners is expected to be completed through the licensee and via ASIC. Read the announcement here. ASIC RELEASE FEE DISCLOSURE GUIDANCE No-action position if it is impossible or unreasonably onerous for fee recipients to determine the day that an arrangement was entered into. This means that ASIC will not take regulatory action if fee recipients notify existing clients in writing of a date between 1 July 2013 and 31 January 2014 that they will notionally treat as the anniversary of the arrangement (the first disclosure day) and provide the fee disclosure statement within 30 days of that date.
The FPA is working with its member committees to develop a submission in response to the TPB’s proposal. Submissions are due by 21 May 2013.
7 March 2013
Read the ASIC media release
Read the FPA media release
26 February 2013
FSC DECISION NOT TO PROCEED WITH INSURANCE CHURNING STANDARD
The Financial Services Council has been working with its life company members for some time on a replacement business policy in response to the Minister Shorten’s statement on 29 August 2011 calling for reform.
The FSC has consulted with a range of industry bodies, regulators, consumer groups and the government and at the end of last year the FSC Board determined to proceed with an application to the ACCC to approve the proposed FSC framework.
We no longer have unanimity on this approach and will not proceed with our application to the ACCC.
The proposed framework raised a complex set of factual, legal and economic issues from a competition perspective which meant that it would have required regulatory approval in order to be implemented. There was no guarantee that such approval would be obtained.
The FSC remains committed to ensuring a sustainable life insurance sector which will deliver outcomes for the community and the industry participants.
12 February 2013
DRAFT LEGISLATION REGULATING FINANCIAL PLANNERS PROVIDING TAX ADVICE
The Government has released draft legislation to regulate financial planners. This is inline with the Government’s deferment of the requirement for financial planners to register as a tax agent if providing tax advice to retail clients.
Proposed key requirements for financial planners include:
The notification phase - 1 July 2013 until 31 December 2014
From 1 July 2013 until 31 December 2014, financial planners need only notify the TPB that they:
- are a financial services licensee or a representative of a licensee; and
- provide tax advice (financial product) services.
Once registered, financial planners must comply with the TBP Code of Professional Conduct
Note: no additional education or qualification competency requirements will be needed at this time.
From 1 January 2015, all new and existing financial planners must be registered and meet TPB competency and education requirements to provide tax advice (NB: education and competency requirements for financial planners are still be determined and will be announced through regulations).
Financial planners who are not registered and provide tax advice after 1 January 2015 will be in breach of the law and face penalties.
The Treasury is calling for submissions on the draft legislation by 8 March 2013. Read more here.
Read the draft legislation here.
Read the draft Explanatory Memorandum here.
Read the proposed changes to the regulations here (these will not be finalised until the legislation is finalised).
31 January 2013
INVESTMENT EARNINGS ON DECEASED INCOME STREAMS TO REMAIN TAX-FREE
The Government has released draft regulations to ensure that investment earnings on superannuation benefits that were supporting a pension will continue to be tax exempt following the death of the pension recipient until the benefits are paid out of the fund.
The measure follows the announcement made by the Government in their Mid Year Economic Forecast Outlook (MYEFO) and applies to the 2012/13 and later income years.
Read the Draft Regulations here.
Read the Explanatory Document here.
Read the Minister’s press release here.
To assist the FPA in providing a possible submission to the draft regulations please email policy@fpa.asn.au by 11th February 2013.
25 January 2013
ASIC today have released regulatory guidance on the Fee Disclosure Statement (FDS). This regulatory guide is designed to provide guidance on what your obligations are when issuing a FDS to your clients, both existing and new.
The guidance provides information on who needs to provide the FDS, when this needs to be provided, the contents of the FDS, determining the fee disclosure (anniversary) date and streamlining the fee disclosure date.
ASIC has also provided no-action relief throughout the regulatory guidance to support financial planners when it is unreasonable to be able to comply with the FDS obligations. These include the following scenarios:
Download the Regulatory Guide.
21 January 2013
SMSF AUDITOR REGULATIONS - IMPLEMENTATION UPDATE
The requirement for ASIC to establish a register of SMSF auditors is a component of the Commonwealth Government's broader 'Stronger Super' reforms.
Regulatory Guide & Class Order
On 10 December 2012 ASIC released Regulatory Guide 243 Registration of self-managed superannuation fund auditors (RG 243). The focus of the regulatory guide is to explain how to apply for registration as an approved SMSF auditor with ASIC. The SMSF auditor register that will be maintained by ASIC and the transitional arrangements for the registration of existing 'approved auditors of SMSFs' are also explained in the guide.
ASIC has also released proposed competency standards in Class Order 12/1687 Competency standards for approved SMSF auditors (CO 12/1687).
The competency standards detail ongoing requirements for registered SMSF auditors and will apply from 1 July 2013. The competencies are based on pre-existing standards prescribed by The Institute of Chartered Accountants (Australia), CPA Australia and the Institute of Public Accountants. The standards also apply to members of the Superannuation Professionals’ Association of Australia Limited and should ensure consistency in standards across the major industry bodies.
For more information, see ASIC media release 12-308MR ASIC releases SMSF auditor registration guidance and competency standards.
Key Dates for Applications
Transitional arrangements will apply for existing 'approved auditors of SMSFs' between 31 January 2013 and 30 June 2013 (the transitional period). Existing 'approved auditors of SMSFs' can apply to ASIC for registration under the transitional arrangements from 31 January 2013. Auditors should apply to ASIC before 30 April 2013 to ensure their application can be processed by 1 July 2013.
It is important to note, approved auditors of SMSFs who lodge their applications after 30 June 2013 will not be eligible for any transitional arrangements. This means if an application has not been approved (by ASIC) by 30 June 2013, the SMSF auditor must immediately cease signing off SMSF-independent audit reports (IAR) for SMSFs until they are registered.
If you would like to receive regular updates on the SMSF Auditor reform you can subscribe to the free SMSF Auditor Update eNewsletter or visit the SMSF Auditors home page on the ASIC website.
15 January 2013
FPA/FSC Anti Money Laundering updated Guidance Note and Customer ID Forms
The Financial Services Council (FSC) and the Financial Planning Association have released an updated Guidance Note assisting financial planners and product issuers to manage their customer identification obligations under Chapter 7 of the Anti-Money Laundering (AML) and Counter-Terrorism Financing Rules. Accompanying the Guidance Note are ten customer identification forms (for various customer types).
18 December 2012
GOVERNMENT CALLS FOR 2013 PRE-BUDGET SUBMISSIONS
FPA members can contribute to the pre-budget submission on issues of superannuation, contribution caps, income tax, CGT, SMSFs, life insurance and any other areas of tax policy by emailing your comments, ideas and feedback to policy@fpa.asn.au by 20 January 2013.
Read the media release from Treasury.
5 December 2012
MYSUPER (TRANCHE #3) PASSES PARLIAMENT
The Superannuation Legislation Amendment (Further MySuper and Transparency Measures) Bill 2012 was passed by the parliament in the last week of sitting for 2012. The legislation defines those member balances that trustees must transfer to a MySuper product by 1 July 2017. As a result of submission made by the FPA and other industry groups the Government moved amendments so that only those member balances where the member has either not provided any investment direction to the fund at all or where the member's entire balance is invested in the fund's default investment option will be transferred. That is members who have exercised super choice will not be captured in the automatic transition of their super benefits into MySuper.
To read the FPA submission, click here.
To read the Minister’s press release, click here.
FINAL MYSUPER (TRANCHE #4) IS INTRODUCED INTO PARLIAMENT
In the last week of sitting 2012 the Government introduced the final piece of MySuper legislation into parliament. The Superannuation Legislation Amendment (Service Providers and Other Governance Measures) Bill 2012 is intended to:
Override any provisions in a fund’s governing rules that require the trustee to use a specified service provider, investment entity or financial product.
Provide APRA with the power to issue infringement notices for certain breaches of the SIS Act.
Require trustees to provide reasons for decisions made in relation to a complaint.
Increase the time limit for members to lodge complaints with the Superannuation Complaints Tribunal
To read the government’s press release, click here.
FoFA UPDATE
RESTRICTION OF THE TERM “FINANCIAL PLANNER”
Last week the FPA announced the release of draft legislation stating that individuals must be licensed and authorised to provide personal financial advice, i.e. an authorised representative or representative of an AFS Licensee holder, before being legally permitted to use the term "financial planner" or "financial adviser".
The draft legislation has been released for consultation with submissions from the industry due by Friday 21 December. Following consultation it is expected that Government will introduce final legislation to parliament in early 2013.
Read the latest coverage from:
Money Management
Wealth Professional
Investor Daily
Professional Planner
Money Management
REMOVAL OF EXISTING ACCOUNTANTS' EXEMPTION
Further, the Government also released draft regulations to remove the existing accountants’ exemption and implement the "limited license" arrangements as announced by Minister Shorten back on 23 June 2012. Effectively the draft regulations enables both accountants and financial planners to sign up to a limited license that will allow them to give "class of product advice" on basic deposit products, general and life insurance, securities, and simple managed investment schemes.
Accountants operating under this licence will be required to comply with all the obligations that currently exist for financial planners including all the new FoFA measures such as the best interests duty and conflicted remuneration.
28 November 2012
GOVERNMENT RELEASE DRAFT LEGISLATION ON RESTRICTION OF TERM “FINANCIAL PLANNER”
The Government has released draft legislation to restrict the use of the term ‘‘financial planner’’.
The draft legislation states that individuals must be licensed and authorised to provide personal financial advice, i.e. an authorised representative or representative of an AFS Licensee holder, before being legally permitted to use the term "financial planner" or "financial adviser".
Read the announcement from Government
Read the draft legislation
Read the FPA's Q&A
Read the FPA's media release
REMOVAL OF EXISTING ACCOUNTANTS’ EXEMPTION
The Government has released draft regulations to remove the existing accountants’ exemption and implement the 'limited license' arrangements as announced by Minister Shorten on 23 June 2012.
Effectively the draft regulations enables both accountants and financial planners to sign up to a limited license that will allow them to give "class of product advice" on basic deposit products, general and life insurance, securities, and simple managed investment schemes.
Read the announcement from Government.
Read the draft legislation.
26 November 2012
SENATE PASSES A NUMBER OF SUPERANNUATION
Last week the Senate passed a number of pieces of superannuation legislation, including MySuper (trance #2) and the new legislation permitting the transfer of Superannuation benefits between Australia and New Zealand.
In total there were four pieces of legislation that passed through the Senate, which included:
Superannuation Legislation Amendment (MySuper core provisions) Bill 2011 - Tranche #2
Superannuation Legislation Amendment (New Zealand Arrangement) Bill 2012
Superannuation Laws Amendment (Capital Gains Tax Relief and Other Efficiency Measures) Bill 2012
Superannuation Auditor Registration Imposition Bill 2012
(1) MySuper (tranche #2)
Tranche #2 of MySuper establishes the core framework for MySuper products, which will replace existing default investment options in superannuation funds from 1 July 2013.
MySuper products will provide a default superannuation product that all Australians can rely on. It will be limited to a common set of features to make it easier for members, employers and other stakeholders to compare performance across MySuper products.
NB: There are four tranches in total making up the MySuper legislation, with two more still to be passed by parliament.
To read the minister’s press release, click here.
(2) Aust - NZ super transfers
Currently, Australians and New Zealanders working in Australia cannot take their superannuation with them when they permanently leave Australia.
Commencing from 1 July 2013, New Zealanders who move to Australia will be able to consolidate their New Zealand retirement savings with their Australian superannuation benefits.
Australians moving to New Zealand, and New Zealanders returning home, will be able to take their Australian benefits with them, to consolidate with their New Zealand retirement savings.
Key features of the portability scheme include:
-Individuals may transfer their retirement savings between an Australian complying superannuation fund regulated by the Australian Prudential Regulation Authority and a New Zealand KiwiSaver scheme
- Participation is voluntary for members and for superannuation funds and schemes
- Retirement savings will generally be subject to the rules in the host country and
- New Zealand retirement savings transferred to Australia will be treated as non concessional contributions and subject to the Australian non concessional cap arrangements at the initial point of entry
To read the minister’s press release, click here.
(3) Capital Gain Tax Relief
One of the changes sees the restoration of temporary tax relief in the form of loss relief and asset rollover for mergers of superannuation funds with some amendments.
From October 1, 2011 to July 1, 2017, superannuation funds that merge can roll over unrealised gains or losses on revenue and capital assets and allow the transfer of realised revenue losses and capital losses.
This taxation relief removes certain tax impediments to superannuation funds merging to achieve efficiencies and cost reductions for members in response to the Stronger Super reforms.
The new legislation will expand the information that must be reported by superannuation providers to their members.
Under the revised reporting obligations, superannuation providers will be required to provide statements for all members who held an interest in the fund at any time during the reporting period, not just those for whom contributions are received.
To read the minister’s press release, click here.
(4) Auditor Registration
The bill will establish a new registration regime for self-managed superannuation fund (SMSF) auditors, commencing on 31 January 2013.
The measure will require auditors to register with ASIC and satisfy a range of minimum standards. As part of SMSF auditor registration, all auditors of SMSFs will be required to meet initial and ongoing requirements relating to their qualifications, competency and independence.
To read the minister’s press release, click here.
19 November 2012
APES 230 TO GO AHEAD
The Accounting Professional and Ethical Standards Board (APESB), which is the standards setting body for the joint accounting bodies (ICAA, CPA and IPA) held their Board meeting on Friday 16 November 2012 to determine the next steps in respect to their proposed standard for Financial Planning Services, which is called APES230.
Though 81% of submissions and stakeholder feedback did not and do not support APES 230, including the three Accounting Bodies who make up the membership of the APES Board, a decision was made by the APES Board to proceed with the controversial standard.
Download our fact sheet.
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Thursday, 16 May 2013The terms “financial planner / adviser” are one step closer to enshrinement under law following the overnight tabling of a Parliamentary Joint Committee (PJC) report in Canberra.
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Tuesday, 14 May 2013Tonight’s Federal Budget announcement avoided further big ticket superannuation system tinkering - a point welcomed by the Financial Planning Association (FPA).
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Monday, 29 April 2013The Financial Planning Association (FPA) has responded to the long awaited Government responses to the Parliamentary Joint Committee (PJC) Trio inquiry and the Richard St John report on Friday.
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CFP®, CERTIFIED FINANCIAL PLANNER®, and 
are certification marks owned outside the US by the Financial Planning Standards Board Ltd (FPSB). Financial Planning Association of Australia Limited is the marks licensing authority for the CFP marks in Australia, through agreement with the FPSB.