Guide to standards & regulations
For Chartered Accountants operating in the financial services sector there are an extensive array of regulations and standards to abide by. In addition to the legislative requirements such as the Corporations Act and regulatory requirements through ASIC, there are also requirements and regulations outlined by the Institute and the Accounting Professional and Ethical Standards Board (APESB).
ASIC Financial Services – Overview
The ASIC website outlines all the details in regards to operating as an Australian Financial Services Licensee and the provision of financial advice. The key areas are licensing, training and compliance. ASIC has a range of Regulatory Guides that detail the specific requirements in the provision of financial advice and also in regards to the provision of credit and responsible lending obligations.
Institute and APESB regulations and standards
Regulations relating to membership of the Institute’s Financial Planning Chapter for practising members are set out in Regulations (R10).
These regulations and requirements include:
- annual fees
- ongoing training
Accounting Professional and Ethical Standards Board (APESB)
Visit the APESB website.
There are a range of professional and ethical standards administered by the APESB. In addition to the standards applying to members in public practice the current standard relating to the provision of financial advice APS12 has been reviewed and will be replaced by APES 230 Financial Planning Services. This new standard commences from 1 July 2014. For further detailed information on APES 230 is available on the APES 230 page.
The following details in regards to APS12 continue to apply until 1 July 2014.
APS 12 - Statement of Financial Advisory Service Standards
The Institute of Chartered Accountants in Australia and CPA Australia issued the statement of Financial Advisory Service Standards ('APS 12') which became operative on 1 November 2005.
APS 12 covers the professional aspects of financial advice undertaken by a member, whether they are an AFS licensee or a representative in the provision of financial services under the Corporations Act (2001), or give financial advice which is not subject to licensing requirements.
Members also have the responsibility to be familiar with all the other standards and By-laws applicable.
Guide to APS 12
This Guide is jointly issued by the Institute and CPA Australia to assist members to comply with the requirements of APS 12 – Statement of Financial Advisory Service Standards.
APS 12 Notification Form
Under APS 12, members must notify the Institute and/or CPA Australia when they:
- Commence the holding of an AFS License;
- Cease to hold an AFS License;
- Become a Representative/Authorised Representative of an AFS Licensee; or
- Cease as a Representative/Authorised Representative of an AFS Licensee
Article last updated 25 June 2014