1
July 2010
Media statement issued by the Joint Accounting Bodies (JAB)
(CPA Australia – Institute of Chartered Accountants in Australia – National Institute of Accountants)
Accountants call for achievable timeframe in
proposed financial advisory services standard
The Accounting Professional & Ethical Standards Board (APESB) needs to set a pragmatic timeframe for
implementation of a proposed new standard for accountants who offer financial advisory services.
The APESB – the independent standard-setting body for professional accounting bodies – yesterday released
Exposure Draft APES 230
Financial Advisory Services, which proposes to replace commissions and
percentage-based asset fees in the accounting profession with genuine fee-for-service models.
If the laudable intent and principles of the draft standard
are to be achieved, an appropriate timeframe for
implementation needs to be reconsidered during the Exposure Draft process.
APES 230 Financial Advisory Services
is another step in the right direction in the
structural reform of the
financial planning industry, shifting the focus to the quality and delivery of financial advice.
This reform process has been underway for the past five years – the major milestones being the development
and implementation of the existing accounting standard APS 12 Statement of Financial Advisory Standards
and now APES 230; the ongoing changes implemented by the financial planning industry; and through the
federal government reform process.
Embedding this new focus on the quality of financial advice will only be achieved by identifying and
addressing the drivers of quality advisory services:
Genuine fee-for-service remuneration
Further education and training
Higher professional standards
Greater financial literacy for consumers.
Recognised accountants
offering financial advisory services have an important role in Australia’s wealth
management. Further reform of the financial planning industry will help build public trust and confidence and
minimise any real, or perceived, conflicts of interest.
It will also minimise the need for further regulation of the industry, and will reduce complexity and compliance
costs for accountants offering financial advisory services.
Implementation of any
new standard presents practical challenges that require a workable timeframe to
address. In this case, less than 12 months would not provide JAB members with sufficient time to transition to
the new standard, while also taking into account the federal government’s Future of Financial Advice reforms.
The JAB will consult widely with its members and work with the APESB to consider these issues in the
coming months.
Media enquiries please contact:
Dina Jaballah
CPA Australia
Ph: 0423 501 501
Jasmine Hogg
Institute of Chartered Accountants in Australia
Ph: 0423 791647
Reece Agland
National Institute of Accountants
Ph: 03 8665 3115
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