The Tax Agents Services Act will “create havoc” for financial advisors in Australia, according to the Financial Services Council.

The Council has expressed dismay at the results of a Parliamentary Joint Committee inquiry into the proposed regulations, which failed to recommend changes. CEO John Brogden says the Council recommended 17 amendments to enable the new act to work in harmony with the existing Future of Financial Advice reforms. In particular, he urged a clearer definition of the types of professionals who will be subject to the act.

“The current definition is too broad and will impact anyone holding an Australian Financial Services license,” he said. “This includes insurers, superannuation providers and even call centres.”

The FSC says it will work with the Federal Opposition and Independent MPs to change the legislation through the Parliament.