Financial Services Industry Partnership
Financial Services Industry Partnership
This charter forms the governance plan for this partnership and clearly identifies its purpose, roles and responsibilities.
Terms of reference
The purpose of the Financial Services Industry Partnership (FSIP) is to provide senior executives from the Australian Taxation Office (ATO) and senior representatives of the financial services industry from the small to medium enterprise (SME) market (groups with turnover from $2 million to $250 million) with a forum for dialogue, consultation and the resolution of issues concerning the administration of the tax system relevant to the financial services industry. It will also have a whole-of-government approach to the interactions with industry.
The ATO has representation from all areas involved in administering financial services, including:
- Finance and Investment Centre of Expertise
- Goods and Services Tax (GST), Interpretation and Large Enterprise Compliance (ILEC) Financial Supplies and Insurance
- Small and Medium Enterprises (S&ME) Financial Services and the Financial Arrangements Risk Manager
- Large Business and International (LB&I) Financial Services Industry Group (FSIG)
- Superannuation.
In partnership, the financial services industry aims to:
- help the ATO improve our knowledge of finance markets and the associated products and services
- provide a sounding board for the ATO to help us understand certain events and activities, and to appreciate the underlying drivers associated with them
- provide advice to the ATO on broad trends in the finance industry
- help the ATO identify patterns and trends both within the finance market and flowing from the activities within this market
- ensure the ATO is better informed about the finance industry so that we can better predict change and its impact.
Type of forum and length of term
Categories: The FSIP is a forum that examines the financial services industry from a number of perspectives including:
- client and risk
- tax interpretation and administration
- external environment.
Length of term: Ongoing.
Governance and relationships
- The forum approver is the ATO Second Commissioner, Compliance Sub-plan.
- The forum chairpersons come from the ATO assistant commissioner level across S&ME, the Finance and Investment Centre of Expertise, LB&I and Superannuation.
- The forum's governance arrangements involve an ongoing tenure for the financial services industry representatives, covering a whole-of-government (regulator) approach with a diverse range of representation across industry and association levels.
- The forum maintains relationships with other regulatory bodies such as the Australian Securities and Investments Commission (ASIC), Australian Prudential Regulation Authority (APRA), Centrelink, Australian Accounting Standards Board (AASB), Australian Competition and Consumer Commission (ACCC), Australian Transaction Reports and Analysis Centre (AUSTRAC) and Treasury. It also interacts with
- the S&ME, Superannuation, LB&I and Office of the Chief Tax Counsel (OCTC) business and service lines within the ATO
- other ATO committees/forums that it has a connection to, including the Superannuation Consultative Committee (SCC) and the National Tax Liaison Group (NTLG) Finance and Investment Sub-committee
- external organisations such as the Australian Bankers Association (ABA), Financial Planning Association (FPA) and various super associations.
Membership of the FSIP comprises senior staff from the ATO, APRA, ASIC, ACCC, AUSTRAC, Centrelink and the AASB, a number of industry representatives and a representative from Treasury.
Members will be drawn from across the industry and should be representative of the issues impacting it.
The membership may vary from time to time and will be reviewed annually, with additional reviews occurring for each meeting as needed.
The target segment is primarily SMEs with under $250 million of turnover. Consultation with the LB&I section of the ATO will be included where appropriate and will be brought to the forum on an issue or needs basis.
The members of the forum will be a mix of associations and industry groups that have issues to bring to the table.
Standing members
Standing members of the FSIP are listed below.
Financial services
- Association of Financial Advisers (AFA)
- Australian Finance Conference (AFC)
- Australian Financial Markets Association (AFMA)
- Australian Listed Investment Company Association (ALICA)
- Australian Securitisation Forum (ASF)
- Australian Stock Exchange (ASX)
- Finance Brokers Association of Australia Limited (FBAA)
- Financial Planning Association of Australia (FPA)
- Financial Services Education Agency Australia (FSEAA)
- Friendly Societies of Australia (FSA)
- Insurance Brokers Network Australia (IBNA)
- Insurance Council of Australia (ICA)
- Mortgage and Finance Association of Australia (MFAA)
- Financial Services Institute of Australasia (Finsia)
- Treefarm Investment Managers Australia (TIMA)
Superannuation
- Association of Superannuation Funds of Australia (ASFA)
- Self-Managed Superannuation Fund Professionals' Association of Australia Limited (SPAA)
- Small Independent Super Fund Association (SISFA)
Regulators and other government agencies
- Australian Accounting Standards Board (AASB)
- Australian Competition and Consumer Commission (ACCC)
- Australian Prudential Regulatory Authority (APRA)
- Australian Securities and Investments Commission (ASIC)
- Australian Transaction Reports and Analysis Centre (AUSTRAC)
- Centrelink - Financial Information Service
- Treasury
Financial institutions
- Australian Bankers Association (ABA)
- Abacus - Australian Mutuals (the Association of Building Societies and Credit Unions)
- Investment and Financial Services Association (IFSA)
Tax practitioner associations
- CPA Australia
- Institute of Chartered Accountants in Australia (ICAA)
- Taxation Institute of Australia (TIA)
ATO representation
- Gary Marizza (Chairperson), Assistant Commissioner S&ME
- Christine Dacey (Co-chairperson), Assistant DeputyCommissioner Superannuation
- Colin Walker (Co-chairperson), Assistant Commissioner Finance and Investment Centre of Expertise
- Tony Long, Assistant Commissioner Goods and Services Tax
The basis for selection of ATO staff is under the compliance plan and their relationship to the financial services industry. The term of appointment is reviewed every 12 months.
The ATO Deputy Commissioner S&ME, and chairpersons from S&ME, Superannuation and OCTC approve changes in membership and the associated procedures. Membership is assigned to the designated position (not the individual occupant). This includes officers who are acting or temporary placements in a position.
These members may send representatives to the meeting if it is agreed to by the chair.
If the holder of the designated position changes their substantive position, they are no longer a member of the committee unless their new substantive position is also a member of the committee.
Members attend the meetings to:
- report on their respective activities
- discuss agenda items
- provide further detailed information.
To address specific matters, the chair may invite other attendees (who are not members) in advance or ask that they be called on the day to attend the meeting.
Other attendees
- Agricultural Finance Forum
- Law Council of Australia
- National Insurance Brokers Association (NIBA)
- Corporate Tax Association
Secretariat
ATO
The ATO will:
- administer the forum
- provide timely opportunities for consultation and the testing of services
- ensure issues and concerns raised are addressed and, where possible, resolved.
In partnership the ATO aims to:
- better understand and meet the communication needs of the industry
- identify ways to minimise the costs of compliance by integrating tax system design and supporting businesses to meet their tax obligations
- advise of relevant issues emerging across other industries that may be of significance
- increase awareness of particular tax issues across a range of industries where they may be relevant
- increase community understanding and confidence in the administration of the tax system and seek feedback on its service delivery and performance
- develop better strategies to address compliance risks within the industry.
Chair
The role and responsibilities of the chair (in conjunction with the co-chairpersons) is to:
- contribute to the planning of the forum's workload
- call meetings and set the agenda, in conjunction with the secretariat
- lead meetings, ensuring that minutes are kept and records are maintained
- direct deliberations of the forum by framing the issues, setting the tone for the forum's discussions and actively engaging all members in discussion
- establish and review short-term and long-term forum goals
- ensure financial expenses are in accordance with corporate policies
- maintain relationships with key stakeholders
- undertake risk management.
Members
The roles and responsibilities of members include:
- to represent the views and concerns of their industry
- to provide input into the agenda for meetings
- to work constructively with the ATO in prioritising and addressing industry concerns
- to report back to their industry colleagues and associations the outcomes and achievements of the forum
- to help distribute ATO information via the industry's communication channels (for example, publications and conferences)
- if they cannot attend a meeting, to arrange an appropriate replacement
- to help keep the industry informed of tax issues of wider interest
- to communicate decisions, in particular 'out of session' decisions, as relevant
- to act with due diligence and good faith
- a commitment to act in the best interests of the ATO as a whole
- to declare conflicts of interest or role according to the committee policy
- confidentiality
- to attend meetings
- to participate in discussions
- to read and understand papers
- to raise concerns
- to deal with other members and staff with courtesy and respect
- to provide access to information.
Attendees
Invited guests, guest speakers and other attendees form a regular part of the FSIP operations. Invitees are not responsible for decisions and, therefore, are not accountable for the outcomes of a meeting.
Attendees attend the meetings to:
- report on their respective activities
- discuss agenda items
- provide further detailed information.
To address specific matters, the chair may invite other attendees (who are not members) in advance or ask that they be called on the day to attend the meeting.
Secretariat
The role of the secretariat includes:
- preparing and distributing the agenda and papers for each meeting, including
- liaising with ATO internal stakeholders in preparing the agenda
- liaising with external stakeholders in preparing the agenda
- understanding the workings and needs of the panel
- understanding the workings and needs of the forum, including
- acting as a sounding board for possible forum referrals
- receiving submissions to the forum
- liaising with members to prioritise matters
- taking minutes and maintaining records
- maintaining and publishing a 'decision log', and tracking action items
- contributing to the yearly review.
The FSIP meets four times a year, generally from 10.00am to 2.00pm.
The proposed meeting dates for 2013 are:
- 23 April 2013
- 18 July 2013
- 21 November 2013
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Dates may be subject to change.
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Papers are distributed as follows:
- draft agenda - two weeks prior to the meeting
- draft minutes - four weeks after the meeting.
The following procedures will apply to the meetings:
- Meetings will be held at intervals to be agreed by members - generally four times a year.
- Special meetings may also be called to deal with specific or urgent issues.
- Meetings will be held as agreed or alternately in Sydney and Melbourne, either in the ATO or an alternative industry location.
- A standard meeting will be scheduled to commence at 10.00am and to conclude at 2.00pm. Where longer meetings are expected, the ATO liaison officer will coordinate with members on the proposed duration prior to the meeting.
- Meetings will be chaired by the senior ATO Senior Executive Service (SES) representative present.
- Proxies or apologies must be notified at least three working days prior to the meeting.
- Members will keep papers secure. Members not employed by the ATO are to store records appropriately, in accordance with PS CM 2005/27: Record keeping.
- Confidentiality is required for certain pieces of information discussed or presented in the forums. This will be clearly identified as confidential when the matter arises.
- Emphasis will be placed on avoiding duplication of issues that will appear in other forums that members attend. The meetings will endeavour to supplement the needs of attendees.
Resources
Members are expected to attend the forum meetings.
The secretariat will liaise with member contacts on various catering and attendance protocols. All members should contact the secretariat regarding requests for reports and other handouts, documentation and specific information related to the forum.
Travel to meetings is at the members' own expense and the use of alternative mechanisms such as teleconferencing will be considered, especially for any sub-group forum activity.
Records management
All records will be kept and made available where appropriate in relation to risk and issues management. This includes all 'out of session' decisions.
Adequate records will be maintained. Records of agendas and related papers will be kept by the secretariat.
All minutes and attachments will be kept for a period of five years. Minutes are published to the ATO website.
Risks and issues management
The FSIP maintains an issues register, with the ATO Assistant Commissioner and National Program Manager S&ME contributing to it as issues arise. The register contains issues identified as being of strategic significance.
Once an issue has been identified, a process begins to address the issue within the ATO immediately. This process includes:
- Escalation of an issue to the point where it can be most appropriately considered. Staff should escalate potential issues to team leaders in the first instance for consideration or further escalation.
- The formation of an opinion as to the significance of the issue and how wide the impact is likely to be.
- If the issue is significant
- the determination of the time frame for responding
- if necessary, the escalation of the issue to where it can be most appropriately addressed
- devising a response or mitigation strategy and, if required, developing a strategy to communicate the ATO response to the issue
- inclusion of the issue on the issues register.
In the case of major strategic issues, it may be necessary to escalate the issue urgently, ensuring senior management are notified immediately. ATO national program managers are also responsible for advising and/or escalating issues of strategic significance to the ATO First Assistant Commissioner, Policy Management Division. ATO sub-plan executives are responsible for ensuring potential issues of strategic significance as a result of changes in strategy (driven by risk) are identified, with proposed mitigation treatments included in sub-plans.
Communication procedures
Decisions (including 'out of session' decisions), meeting outcomes and actions will be communicated to key stakeholders. The secretariat is ultimately responsible for communicating decisions and providing relevant updates to the members.
Payment
It is not ATO policy to pay the travel or accommodation costs incurred by organisations or representatives attending its consultative forums. However, in instances where an organisation might be prevented from attending a meeting due to very limited financial resources, and their absence would detract from the effectiveness and completeness of the consultative process, the ATO may agree to pay travel or accommodation costs. Any decision to fund a participant is made on a case-by-case and on a per meeting basis.
Should an organisation or representative require financial assistance to attend a particular meeting, they should make a submission in writing to the ATO at least one month prior to the meeting date. This will allow the chair to consider the request and make any necessary arrangements. Requests for reimbursement will not be considered for meetings previously attended.
Where travel or accommodation costs have been paid, the participant must provide the ATO with all relevant airline boarding passes and official receipts in order to substantiate the travel and meet audit requirements.
Any other costs associated with the forum (for example, catering or any venue hire) will be met by the ATO.
Escalation of issues
The details of procedures to escalate issues where the chairpersons, secretariat and members of a forum conclude that an issue cannot be satisfactorily resolved, or where particularly important intelligence or sensitive issues are raised, are documented and addressed by the chair. They are as follows:
- the appropriate information is tabled by the forum members along with their concerns
- the chair provides suitable information to the ATO National Program Manager
- the NTLG Finance and Investment Sub-committee is made aware of the development of the issue
- the need for a consultation, co-design or collaborative process is established where appropriate
- the issue may then be raised as a technical issue with the NTLG Sub-committee, or as an administration issue for the appropriate ATO business line to resolve.
Conflicts of interest and roles procedures
The procedures for managing conflicts of interests and roles are:
- each year, members are required to declare potential, perceived or real conflicts of interest they may have in relation to their role in writing, and are required to update them as relevant during the financial year
- at the beginning of each meeting, members should raise any conflict issues - the relevant agenda item may need to be managed in the following ways
- the member is excused from the meeting for the relevant agenda items
- the member remains in the meeting but does not participate in discussion on the relevant agenda items
- the member has an opportunity to contribute to the discussion in other ways, such as offering advice or opinions prior to the issue being discussed by the forum as a whole
- the member contributes to the discussion as a full member, after verbally declaring a conflict.
The FSIP operations are from 1 January to 31 December each year.
A formal evaluation of the forum will be undertaken annually. Reviews will be conducted by the chair in consultation with members and key stakeholders. The partnership will be assessed against the ATO's best practice principles for consultation, and the review will examine the forum's outcomes and membership.
Feedback on the effectiveness and outcomes of the forum will be sought from all members of the partnership. The feedback will then be used to determine ways to improve the forum and specifically address any concerns or weaknesses identified by the members.
The regulatory/government participants such as ASIC, APRA and AUSTRAC will also be consulted on how the forum meets the needs of the financial services industry and on any improvements that are required for future meetings.
Assurance will be provided by the chair to the ATO Deputy Commissioner, Governance and Government Relations (GGR) by 31 January each year.
Last Modified: Wednesday, 27 March 2013
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