‘Pronouncement 11: Financial Planning Services’ proposes a number of requirements for IPA members that will “provide practical alignment with the Future of Financial Advice legislation”, according to IPA chief executive Andrew Conway.
The final APES 230 standards were passed in April 2013 at a meeting of the Accounting Professional and Ethical Standards Board (APESB).
APESB chair Kate Spargo said at the time that the finalised standards should put to rest the “remaining concerns” within the industry about the requirements of APES 230.
But while CPA Australia and the Institute of Chartered Accountants Australia (ICAA) accepted the amended version of APES 230, the IPA said it was “illogical to impose a higher regulatory burden on professionally qualified accountants to that imposed by the FOFA reforms”.
In the exposure draft released yesterday, Mr Conway pointed out that the IPA joined the APESB in 2006 on the proviso that it could “review each standard and to determine its applicability and, where required, to issue an alternative standard”.
“The IPA opposed the original form of APES 230 and has insisted that the imposition of a different regulatory regime to that created through the FOFA reform process is unnecessary,” Mr Conway said.
While the IPA was “pleased” to see the final version of APES 230 addressed many of its members’ concerns, “we have detected growing anxiety in relation to the additional requirements of APES 230”.
The IPA exposure draft proposes the following “additional measures” be adopted by its members as an alternative to APES 230: adherence to APES 110 (Code of Ethics for Professional Accountants); professional indemnity insurance requirements; a public accountant orientation program; continuing professional education requirement and related auditing; and the use of the IPA’s online practice quality assurance system.
The exposure draft also poses a number of questions to IPA members about APES 230.
“The central question being posed is whether the additional components imposed by APES 230 are justified and whether they will make any material impact,” Mr Conway said.
IPA members have until 12 August 2013 to respond to the draft.
