ASIC proposes extending tax advice exemption for licensees

ASIC is proposing to keep a tax advice carve-out for licensees for another five years, allowing advisers and accountants to comment on the tax implications of financial products that fall outside their AFSL, provided they give clients a written warning.

The exemption is due to expire on 1 April 2027.

"ASIC considers that the exemption remains useful and necessary. It therefore proposes to remake the instrument with minor updates, without changing its effect," the regulator said.

ASIC's exemption for licensees and their representatives helps them provide limited advice on the tax implications of financial products that fall outside the scope of their authorisations.

Licensees and their representatives relying on the exemption must provide a disclaimer making clear they are not licensed or authorised to provide the advice, and tax is only one factor to consider, and that clients should consider seeking appropriately authorised advice before making a decision.

ASIC is also taking feedback on the extent to which licensees rely on this instrument and in what circumstances. It is also looking to understand the impact on stakeholders if the instrument is allowed to expire.

ASIC is taking submissions till November 25.