CPA Australia's Professional Statement of Financial Advisory Service Standards, APS12, was released in October 2005 and set the standard of best professional practice for members in providing quality and ethical financial advice to clients. The contents of APS 12 will continue to be promoted to members, the regulators and the broader public to communicate the high standards that have been set.
CPA Australia continues to work with the Government to ensure appropriate refinements are made to the requirements for giving licensed financial advice and that traditional accounting activities are excluded from the Financial Services Reform Act (FSRA). Assistance to members with timely and accurate information continues.
FSRA Refinements
FSR Refinements have almost become a constant change since its introduction in 2004.
CPA Australia will continue to monitor developments and refinements introduced in relation to FSRA and provide input to both the government and the regulators through regular meetings, industry roundtables and formal submissions.
Accountant's exemption with FSRA
Lobbying has continued with a view to having the exemption currently granted to accountants extended so they are able to advise on all superannuation structures without the need to be licensed. Currently, the exemption only allows accountants to advise on Self Managed Super Funds (SMSFs). As at August 2005, the Government had agreed to establish a working party with the accounting profession to explore this issue further. Lobbying continues to ensure that this progresses.
In the meantime, CPA Australia has developed a number of tools to help members understand their obligations, including a 2005 version of the FSR: Your Obligations and Options.
Guidance notes for best practice
In 2007, CPA Australia released four 'best practice' guidance notes to assist members when advising in the following areas:
These are products that are often associated with accountants as part or all the advice does not require licensing.
Finance broking
In early 2005, the Office of Fair Trading issued a discussion paper on the regulation of finance broking advice. Finance and mortgage broking is an activity undertaken by many of our members, some of whom are already licensed under FSRA but many of whom are not.
A draft exposure Bill to regulate the finance broking industry has now been released by the New South Wales Office of Fair Trading. Finance broking Bill 2007, will regulate all types of broking structures including:
mortgage brokers
finance brokers
single line broking
single mobile operators
franchised organisations.
The Bill will require the licensing of all finance brokers, conditions of which will include mandatory education requirements and mandatory professional indemnity insurance.
Whilst the draft exposure Bill is in the form proposed for introduction in New South Wales, the current arrangement is for similar but not identical bills to be introduced in other jurisdictions.
CPA Australia will be reviewing the draft exposure Bill with the view to making a submission. Our current thinking is that it would be beneficial to have one single national regime.
Superannuation
Superannuation is another strong focus area for CPA Australia, which now has its own dedicated webpage, providing further tools and resources for members such as Guidelines for auditors of SMSFs and a website section for Super choice.
CPA Australia welcomes member feedback and ideas regarding financial planning. Members interested in contributing theirs should email finplan@cpaaustralia.com.au.
This page is available online at:
http://www.cpaaustralia.com.au/cps/rde/xchg/cpa/hs.xsl/3668_16647_ENA_HTML.htm
