Sounding out members on financial advisory services

Key Points

  • The Institute has been canvassing member views on financial advisory services
  • The Institute will soon resume consultation on the government’s Future of Financial Advice reforms, including the accountants’ exemption
  • Members are encouraged to make submissions on the Exposure Draft APES 230 Financial Advisory Services.

With the support of the Institute’s regional offices, a series of briefings have been held across the country to canvass the views of members regarding financial advisory services.

These briefings have addressed the Institute’s policy development on the Future of Financial Advice reforms, including the removal of the accountants’ exemption; the Tax Agent Services Regime and financial planners; and the release of the Exposure Draft APES 230 Financial Advisory Services.

The Institute has conducted more than 15 briefings in various forms. Through July and August presentations were made in Adelaide, Canberra, Brisbane and Sydney; with further sessions to be held in Sydney, Hobart and Perth in September.

Head of Financial Planning for the Institute, Hugh Elvy, said the sessions have generated frank discussion about what’s most appropriate for the profession and the public.

‘Direct consultation with members has been an effective way to obtain a better understanding of members’ needs and the challenges they face,’ Mr Elvy said.

‘Feedback from members has been very positive and valuable. But importantly, the briefings have also been a great opportunity for members to gain a deeper understanding of the Institute’s comprehensive and continued advocacy in these critical areas,’ he said. 

Future of Financial Advice reforms - removal of accountants’ exemption

Working with the other members of the Joint Accounting Bodies (JAB) - through the JAB working group - and based on the feedback from members, a draft proposal is being refined in response to the Future of Financial Advice reforms, which will be delivered to Treasury once a new government is formed.

The proposal outlines the role of the Chartered Accountants and emphasises the high-level value and quality of advice that Chartered Accountants provide to their clients.

‘Professional accountants play an important role in the community as trusted advisers on finance, accounting and business matters. However, the current accountants’ exemption in relation to self-managed super funds (SMSF) does not provide an appropriate legislative framework and needs to be replaced with a solution that boosts accessibility and affordability of basic (non-product) advice for the majority of Australians,’ Mr Elvy said. 

APES 230 Financial Advisory Services

The Institute recognises that the Exposure Draft APES 230 Financial Advisory Services is a particularly important and complex matter that requires critical consideration. 

‘The Exposure Draft proposes a number of requirements, including requiring members to replace commissions and percentage-based asset fees with genuine fee-for-service remuneration models. As expected, members have expressed a range of opinions on the merit of the proposals in the Exposure Draft,’ Mr Elvy said.

The Institute is developing a joint submission with the other JAB members. In addition, Institute members are encouraged to make their own submission to the APESB - due by Wednesday, 15 September 2010.

Article last updated 1 November 2010