FOFA recommendations imminent

Key Points

  • The Institute, alongside the other professional accounting bodies, continues to consult on proposals to replace the accountants’ exemption
  • The Institute has also responded to ASIC’s Consultation Paper 153 - Licensing: Assessment and professional development framework for financial advisers
  • Further details will be communicated to members over the coming weeks.

Potential change is underway for Chartered Accountants who operate under the accountants’ exemption, and the Institute is working closely with government bodies as the proposed alternative to the existing accountants’ exemption is agreed.

FOFA reforms update

The Institute is continuing its discussions with ASIC, Treasury and the federal government about a suitable replacement to the accountants’ exemption.

As the government works through the issues, we are working to influence the government’s announcement so that it is consistent with our preferred approach, as detailed in our submission to Treasury.

We will share further details with members as we obtain more clarity on a final proposal.

Training competence requirements for financial planners

The Joint Accounting Bodies (JAB) has issued a response to ASIC’s Consultation Paper 153: Licensing: Assessment and professional development framework for financial advisers. The paper details ASIC’s objective to improve financial planner competencies in order to deliver higher quality advice to consumers, which we strongly support.

The consultation paper included a number of proposals which the JAB commented on:

  • We supported the proposal that new financial advisers be required to be supervised for a 12-month period when they initially become a financial adviser. This aligns with the accounting profession’s use of mentoring programs that are a valuable component of an accountant’s development
  • The consultation paper proposed a national exam for all existing and new financial planners. We believe that this proposal as a stand-alone approach may not deliver the policy outcomes and objectives that ASIC requires, as outlined in the consultation paper. Specifically, the consultation paper proposed that a national exam was an efficient method to demonstrate the required competence for planners to perform their duties. The JAB believes a national exam has a place to demonstrate knowledge, however, there is also a need to demonstrate skills competency
  • As an initial step, we have recommended that ASIC addresses the current monitoring of training providers to ensure a high level of training would be delivered.

Details of the submission and further information can be found on the Institute’s website.

Article last updated 15 June 2011