The Association of Financial Advisers (AFA) has been awarded tax adviser association status by the Tax Practitioners Board.

COO Phil Anderson says it is the first association to apply and be recognised.

“It means AFA members with six years’ experience will not be required to sit commercial and tax law exams,” he said.

Mr Anderson told a roadshow in Melbourne last week that the association changed its bylaws to enable the application.

The amendment has produced another membership category – affiliate member – for people with an interest in financial services, who can give tax advice.

Such members cannot serve on the board but can vote at annual general meetings.

The bylaw changes also include revised education standards requiring either a degree in financial services or a diploma in an area such as financial planning.

Advisers must have six years’ experience in the past eight years and hold professional indemnity insurance personally or through their dealer group.

Practising AFA members will be required to complete 30 hours of continuing professional development each year. The association will conduct audits to ensure compliance.

The bylaw changes also include the code of conduct, which has six principles covering issues such as best interests, conflicts of interest and professional expertise.

Meanwhile, Mr Anderson says the Federal Government will struggle to change financial services legislation due to the hostile Senate.

“The Government needs 39 senators to pass any legislation and currently it has 33,” he said.

“There are eight senators not with either of the two big parties, and the Government has to convince six of them to vote with it.”

Mr Anderson says the Coalition is finding it hard to win support for financial services reform following its battle over the Future of Financial Advice (FOFA) regulations last year.

“The Government has been less keen to talk about financial advice issues,” he said. “It will be difficult to battle with more FOFA changes.”