The CEOs  of CPA Australia and the Institute of Chartered Accountants in Australia have written to the Minister for Financial Services and Superannuation, Bill Shorten,  warning of the risks of limiting the capacity of accountants to give financial advice.

 

In an open letter, published as a full-page advertisement in in the Financial Review, Alex Malley, CEO of CPA Australia, and Lee White, CEO of the Institute of Chartered Accountants commended the government’s objectives in respect of the Future of Financial Advice reforms, but warned that the policy settings needed to be right.

 

“In adopting a suitable replacement to the accountants’ exemption, the government must not limit the capacity of professional accountants to advise clients on financial matter, otherwise it could have a detrimental impact on the ability of consumers in regional and metropolitan areas to access trusted advisors.

 

“We urge you to give full and careful consideration to the financial wellbeing of Australians, and welcome the opportunity to consult further on this vitally important issue.”

 

The letter reflects the issues highlighted recently by the CEO of the Financial Servicdes Council, John Brogden, who warned that while the Future of Financial Advice bills might help to minimise conflicts in the financial planning industry, they were unlikely to improve access to financial advice.

 

Speaking at a FSC Deloitte Leadership Series luncheon, Mr Brogden said with the advent of FOFA, “2012 will see more advisers leave or sell their businesses under the pressure of increased cost and compliance.

 

“Should the new regime not stymie innovation and greater flexibility in the provision of advice - there is also great opportunity. The critical outcome of the FoFA legislation must be the creation of a workable scaled advice framework.

 

“Between intra-fund advice at one end, and comprehensive financial advice at the other, there are many new and different forms of affordable advice that can be provided – and millions of Australians who need it.

 

“A regulatory framework that facilitates genuine scalable advice will open up new markets of millions of consumers. The company that gets their model in the market earliest will have a massive first mover advantage.”