Media Release

Accountants support deferral of financial services standard

Media statement issued by the Joint Accounting Bodies (JAB)
(CPA Australia – Institute of Chartered Accountants in Australia – National Institute of Accountants)

Australia’s professional accounting bodies have welcomed the announcement by the Accounting Professional & Ethical Standards Board (APESB) to defer Exposure Draft APES 230 Financial Advisory Services, which proposes a raft of changes, including the banning of commissions and the introduction of a fiduciary duty.

The APESB, the independent standard-setting body for CPA Australia, the Institute of Chartered Accountants in Australia and the National Institute of Accountants, said in light of the 65 submissions received, it needs more time to evaluate several major issues raised by the accounting profession and other stakeholders.

In October, the professional accounting bodies issued a submission to the APESB, asking for a deferral of the standard on financial advisory services until further consultation was undertaken on the implications of the proposed changes.

Given the significance of the government’s Future of Financial Advice (FoFA) reforms currently underway, the professional accounting bodies support the APESB’s decision to hold further talks with the profession, including individual practitioners, before making critical decisions regarding a standard that will affect all professional accountants who practice as financial planners.

The accounting profession has long supported structural reform of the financial planning industry; specifically, moving away from conflicted remuneration structures and towards a focus on the delivery of quality financial advice.

The professional accounting bodies will continue to consult with the APESB as it reviews the submissions and completes its due process on the Exposure Draft.

The profession will also continue to consult with government on the FoFA reforms via Treasury’s Future of Financial Advice Peak Consultation Group and the Advisory Panel on Financial Advice and Professional Standards.

Article last Updated 5 July 2011