CPA Australia has announced a completely independent subsidiary for providing Australian consumers independent financial advice. Expected expiration of the accountant’s exemption has prompted this decision, feel industry sources. CPA Australia is likely to take both licenses, the Australian Credit License and the Australian Financial Service License.
Accountant’s exemption motivated the move
Mr. Malley, Chief Executive CPA, believes that a lot of unwarranted things have happened over the past years and it is time that the core values of the profession are reestablished. The move, he asserts, is in favour of the general public. Yes, the accountant’s exemption was taken into account but it was not the sole motivating factor, says CPA Australia.
Drifting of accountants within the licensed environment
One sure response to the move will be the movement of many accountants into the licensing environment, possibly before the exemption expires. The CPA has already taken good notice of how important the word ‘independence’ is for its members.
Those criticising the move
This turn of events also has its detractors. There are a few professionals who feel they will be really handicapped if their own governing and regulating body begins to compete with them. They counter that the CPA has itself committed blunder in not supporting the APES 230 2014. Had the body done so, the critics believe, the professionals would have been offering conflict-free, highly moral advice.
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Mr. Malley has chosen the higher moral ground and this may mean more than a few difficulties in the near future. For one, the CPA won’t be allowed to charge asset based fees or commissions. The CPA’s new journey begins on 1 July 2016 (tentative) and this means that the practitioners must be ready for adopting the same one day in advance.
