Strengthening our commitment to financial advice reform

Key Points

• The Joint Accounting Bodies have lodged a submission on APES 230 – Financial Advisory Services
• In order to avoid duplication in the regulatory landscape, the government reform agenda should be allowed to progress before setting a pragmatic timeframe for changes to standards for our members who offer financial advisory services
• The Institute’s Head of Financial Planning, Hugh Elvy, will represent our profession on Treasury’s Future of Financial Advice Peak Consultation Group

Recognising that the Future of Financial Advice (FoFA) reforms will likely result in the most extensive changes to the financial planning industry since the introduction of the Financial Services Reform Act 2001, the Institute, along with the other professional accounting bodies, has asked the Australian Professional and Ethical Standards Board (APESB) to defer issuing the standard on financial advisory services until the outcomes of the FoFA reforms are known.

On Friday, 22 October 2010 we issued a joint submission to the APESB on APES 230 – Financial Advisory Services. Our overarching message was that in order to avoid duplication in the regulatory landscape, we believe the FoFA reforms should be allowed to progress before setting a pragmatic timeframe for changes to standards for our members who offer financial advisory services.

Together, the professional accounting bodies represent 40,000 public practitioners – including financial planners – and we play a vital role in the provision of quality, affordable financial advice to Australians.

The Institute’s Head of Financial Planning, Hugh Elvy, will represent the profession on Treasury’s Future of Financial Advice Peak Consultation Group.

‘We will use this platform to influence the overall reform agenda, which includes removing conflicted remuneration structures across the industry and exploring alternatives to the “accountants’ exemption”,’ Mr Elvy said.

Article last updated 10 November 2010