CTW 94 - Letter writing PDF

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Letter writing ...

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[Date]

[Insert name] [Address line 1] [Address line 2]

Dear [insert name], Addendum to our terms of engagement for additional services related to Coronavirus (COVID-19) assistance measures Thank you for your instructions to provide professional services with respect to COVID-19 assistance measures. This includes measures introduced by:  

Federal, State, Territory and local governments (including their various Departments); and other non-government COVID-19 related initiatives [delete if not applicable].

These services constitute ‘additional services’ for the purposes of our existing engagement, the terms of which are set out in the letter provided by us, dated [insert date of current engagement letter]. Please contact our office if you require a copy of the existing engagement letter to be forwarded to you. This letter is an addendum to the terms of our existing engagement letter and sets out the terms and scope of the additional services to be provided to your family group (the Group), in relation to COVID-19 assistance measures, as well as our fees for performing these services.

1. Purpose and scope of engagement This addendum letter extends the purpose and scope of our existing engagement to include any services provided by us in relation to any COVID-19 assistance measures administered by the ATO, a State or Territory revenue or other authority or any other entity or organisation. The services may relate to, but are not limited to, assistance available under: 

the Coronavirus Economic Response Package (Payments and Benefits) Rules 2020; namely, the JobKeeper Scheme;



the Boosting Cash Flow for Employers (Coronavirus Economic Response Package) Act 2020 ; namely, cash flow boosts for employers; and/or



Subregulation 6.19B of the Superannuation Industry (Supervision) Regulations 1994; namely, early release of benefits on compassionate ground – Coronavirus.

2. Details of services to be provided The specific services to be provided may include, but are not limited to: 

advising about an entity’s entitlement to the assistance;



attending to preparation and lodgment of applications for assistance;



attending to any ongoing reporting requirements to remain eligible for the assistance;

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advising about an entity’s liability to repay any overpayments of assistance; and



advising about seeking a review of a decision about an entity’s entitlement to assistance.

3. Fees and charges Our services will be provided to you on a fee for service basis. However, as an exception, where we provide advice about the early release of superannuation benefits on compassionate grounds due to COVID-19, and we provide that advice in accordance with either the Registered Tax Agent Licensing Relief or the Statement of Advice Relief granted by ASIC, our maximum fee for the advice will be $300 – refer below. [delete if not applicable].

4. Early release of superannuation advice [Note: for unlicensed practitioners only – delete this item if the registered tax agent is licensed to provide financial advice] We do not hold an Australian financial services ( AFS) licence and we are not an authorised representative of an AFS licence holder. However, we are temporarily permitted under Section 6(1) of the ASIC Corporations (COVID-19 – Advice-related Relief) Instrument 2020/355 (the Instrument) to give advice to existing clients about the COVID-19 Early Release of Superannuation Scheme (the COVID-19 advice) without needing to hold an AFS licence or be a representative of an AFS licence holder. For the purposes of this Registered Tax Agent Licensing Relief, we confirm that: 

the client was an existing client as at 14 April 2020;



the COVID-19 advice is from unsolicited contact;



our maximum fee for the COVID-19 advice is $300 (per client);



we will retain a record of the COVID-19 advice which sets out: (i) the brief particulars of the recommendations made and the basis on which they are made, and (ii) if the recommendation is that the client should apply for early release of benefits in relation to the product, the name of the superannuation product or the RSA product to which the recommendation relates; and the implications to the client of the early release of benefits in relation to the product; and



we will provide the client with a copy of the record of the COVID-19 advice when the advice is provided, or as soon as practicable after the advice is provided (and before any further financial service is provided in relation to the early release of superannuation).

4. Statement of Advice Relief [Note: for licensed practitioners only – delete this item if the registered tax agent is not licensed to provide financial advice] We are authorised under an Australian financial services (AFS) licence to provide financial advice. However, Section 7 of the ASIC Corporations (COVID-19 – Advice-related Relief) Instrument 2020/355 (the Instrument) temporarily relieves us of the requirement to provide clients with a Statement of Advice (SOA) for particular advice (the COVID-19 advice). SOA relief for COVID-19 advice in relation to the early release of superannuation

For the purposes of the relief in S.7(7) of the instrument, we confirm that: 

the COVID-19 advice is in relation to the early release on an eligible ground of benefits that are in a superannuation product or an RSA product held by the client;



the provision of the COVID-19 advice is from unsolicited contact;



our maximum fee charged for providing the COVID-19 advice is $300 (per client);



we will keep a record of the COVID-19 advice which sets out: (a) brief particulars of the recommendations made and the basis on which they are made, and (b) if the recommendation is that the client should apply for early release of benefits in relation to the product, the name of the superannuation product or the RSA product to which the recommendation relates; and the implications to the client of the early release of benefits in relation to the product; and



we will provide the client with a copy of the record of the COVID-19 advice when the advice is provided, or as soon as practicable after the advice is provided (and before any further financial service is provided arising out of or connected with the COVID-19 advice).

SOA relief for advice required because of COVID-19

For the purposes of the SOA relief in S.7(13) of the instrument, we confirm that: 

the client expressly instructs us that they require the COVID-19 advice because of the adverse economic effects of COVID-19 and we reasonably consider that the COVID-19 advice sought by the client is required because of the adverse economic effects of COVID-19;



we (or an ‘associated providing entity’ – as broadly defined in subsection 7(18) of the Instrument) have previously given the client an SOA in relation to advice (the previous advice) that sets out the client’s relevant personal circumstances in relation to the previous advice about one or more classes of financial products set out in that Statement;



the COVID-19 advice is in relation to a class of financial products to which the previous advice related; and

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we will keep a record of the COVID-19 advice which sets out: (a) a brief explanation of the changes in the client’s relevant personal circumstances in relation to the COVID-19 advice; (b) brief particulars of the recommendations made and the basis on which the recommendations are made; (c) brief particulars of the information that would be required by S.947D(2) of the Corporations Act 2001 if a SOA were given to the client; and (d) the statement that would be required by S.947D(3) if a SOA were given to the client; and



we will provide the client with a copy of the record of the COVID-19 advice when the advice is provided, or as soon as practicable after the advice is provided (and before any further financial service is provided arising out of or connected with the COVID-19 advice); and if a copy is not given to the client when the COVID-19 advice is provided, we will give the client the information that would be required in a SOA by S.947B(2)(d) and (e), or S.947C(2)(e) and (f) of the Corporations Act 2001, as the case requires, and by S.947D, if applicable.

Timing of giving a SOA for urgent COVID-19 advice

Section 5 of the Instrument SOA relief for urgent COVID-19 advice to the extent the law otherwise requires us to provide a SOA any earlier than 30 business days after providing the COVID-19 advice. For the purposes of the SOA (timing) relief in S.5 of the instrument, we confirm that: 

the client expressly instructs us that they require the COVID-19 advice on an urgent basis because of the adverse economic effects of the coronavirus known as COVID-19 and we reasonably consider that the COVID-19 advice sought by the client is required on an urgent basis because of the adverse economic effects of COVID-19;



if the COVID-19 advice is or includes a recommendation to acquire a financial product and S.1019B of the Corporations Act 2001 may apply to the acquisition, at the time of providing the COVID-19 advice, we will provide a statement in writing: (i) explaining the nature of the rights that the client may have under S.1019B if they acquire the product; and (ii) indicating the client may not receive a SOA in relation to the COVID-19 advice until after those rights have expired; and

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we will take all reasonable steps to give the client a SOA in relation to the COVID-19 advice as soon as practicable after the COVID-19 advice is provided.

5. Confirmation of engagement We ask that you consider all aspects of this addendum letter to ensure that you are satisfied with the scope of the additional work to be provided. It is further acknowledged by the Group that any COVID-19 related services already provided before this addendum came into effect, are covered by this addendum letter. Please contact us if you have any queries. If the terms are acceptable, we ask that each member of the Group (or alternatively, one member of the group that has been duly authorised to act on behalf of the group) sign and date both copies of this addendum letter where indicated. One copy should be forwarded to us. We recommend you attach the other copy to the existing engagement letter, for your records.

Please note that we are unable to perform any work for you until we receive the signed copy [delete if not required]. We thank you for the opportunity to provide additional services to your Group Yours sincerely,

Acknowledgment of terms of engagement I, ................................., having been duly authorised to act on behalf of the Group, confirm that the Group understands and agrees to your terms of engagement, and acknowledge their responsibilities as set out in the terms of this addendum. Dated the __________ day of __________________________, 20_____....