Call for feedback on remuneration models for financial services

Key Points

  • Members who provide financial advisory services are encouraged to use an online feedback-survey to provide essential information on the potential implications of Exposure Draft APES 230 Financial Advisory Services
  • The feedback-survey should take less than 10 minutes to complete, but will provide crucial information as the Institute develops its response to the draft standard and post-election consultations on the federal government's Future of Financial Advice reforms
  • Members who provide financial advisory services are also encouraged to make direct submissions in response to the Exposure Draft to the Accounting Professional & Ethical Standards Board.

Members who provide financial advisory services are encouraged to use an online feedback-survey to provide essential information on the potential implications of Exposure Draft APES 230 Financial Advisory Services 
 
The draft standard, which was issued by the Accounting Professional & Ethical Standards Board (APESB) on 30 June 2010, proposes to require members to replace commissions and percentage-based asset fees with genuine fee-for-service remuneration models. 
 
The Institute, along with the other professional accounting bodies, is developing a submission, and feedback is crucial to establish the potential implications of this Exposure Draft for members who provide financial advisory services.  
 
The APESB has called for submissions by 15 September 2010. Therefore, the Institute will run this survey throughout August to canvas the opinions of members and explore the technical and practical issues that are likely to arise as a result of a new standard. The Institute also encourages members to make submissions directly to the APESB.  
 
The Institute’s Head of Financial Planning, Hugh Elvy, said implementation of any new standard presents challenges that require a workable timeframe to address.  
 
‘We acknowledge that the shift to fee-for-service remuneration may require complex readjustment of existing client arrangements,’ Mr Elvy said.  
 
‘The APESB’s proposed implementation date is 1 July 2011, just 11 months from now. This is unlikely to be sufficient time for all members to transition to the new standard, particularly taking into account that they will also be preparing to meet the timetable for the federal government’s Future of Financial Advice reforms,’ he said. 
 
Members may also provide feedback on these or other issues raised within the Exposure Draft directly to Mr Elvy via email, or in writing to 33 Erskine Street, Sydney, 2000. Member feedback will also be valuable as the Institute, with the other professional accounting bodies, takes part in the Future of Financial Advice reforms consultation.

Article last updated 11 November 2010