The Accounting Professional and Ethical Standards Board (APESB) has issued proposed standard APES 230 Financial Advisory Services, which sets out mandatory requirements and guidance for members who provide 'financial advice'.
The proposed standard will supersede the existing APS 12 Statement of Financial Advisory Service Standards.
The APESB’s exposure draft (PDF) proposed a number of mandatory requirements and guidance in respect of:
- fiduciary responsibilities of members
- professional independence
- fee for service
- soft dollar benefits
The standard proposes that members who provide financial advisory services must only charge clients on a fee for service basis, as defined in the standard. These requirements will apply to new and existing clients (including those from whom a trailing income is being received) or members from the commencement of the standard.
The APESB received 66 submissions in response to the exposure draft, including a joint submission from the Joint Accounting Bodies. Since the close of submissions, the APESB have held a number of meetings to discuss the proposed standard.
Discussions on the proposed standard are still ongoing.