Accountants’ exemption alternative still without clarity

Key Points

• The financial services industry is focused on how the FoFA reforms will impact business models and the industry
• Discussions about the replacement of the accountants’ exemption continue with the professional accounting bodies, Treasury, ASIC, industry bodies and the government
• Institute staff continue to meet with members to discuss the work we have been doing and how members may be impacted.

The financial services industry has been keeping a close eye on the big issues coming up as part of the Future of Financial Advice (FoFA) reforms.

Those who provide financial planning services – including Chartered Accountants – are keenly awaiting further clarity on various elements of the reforms. These include the 'best interests duty, 'opt-in', insurance commissions, volume rebates and the future implications this range of reforms will have on business models and the industry as a whole.

While these are important issues for the development of the financial planning industry going forward, a major focus of the Institute has been on the replacement to the current 'accountants' exemption'. This issue is important not only for members, but for the Australian public, as it is also one of the central planks to the government's FoFA reforms that  could increase the access to advice for consumers.

The issue is a complex one that has required extensive consultation at various levels and the Institute continues to work closely with government and regulators on developing a viable solution.

There is general consensus among stakeholders that professional accountants are well positioned to deliver quality advice to Australians. However, we are faced with a range of challenges on how to best deliver this advice to ensure efficiency and a pragmatic framework.

We will provide further details as they come to hand. Our website will also be regularly updated with all new information.

Institute staff have continued to present at member briefings over the last month, including at the Public Practice Conferences being held around Australia. Should you get the opportunity, we encourage you to attend a sessions and discuss any issues with us.

Should you have further feedback or comments please feel free to email us.

Article last updated 12 July 2011