Austrac has published guidance on when financial advisers do provide and do not provide a “designated service” under the amended AML/CTF Act. Background.
The example analyses a scenario where a financial adviser arranges for an accountant to create a trust for a self-managed super fund (SMSF).
At no point does the financial adviser receive, hold, control or manage the funds in the client’s existing superannuation fund or the SMSF.
Austrac’s view is that the financial adviser would provide table 6, item 6 designated services if the financial adviser decided to:
- take steps to directly create the trust, including acting on instructions to draft the trust deed and draw up relevant paperwork to appoint trustees and assign beneficiaries;
- provide advice on the creation of the trust that’s comprehensive enough to allow their client to create the trust independent of any further professional assistance.
If you found this article helpful, then subscribe to our news emails to keep up to date and look at our video courses for in-depth training. Use the search box at the top right of this page or the categories list on the right hand side of this page to check for other articles on the same or related matters.
Author: David Jacobson
Principal, Bright Corporate Law
Email:
About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
