Professional accounting body CPA Australia will seek an Australian Financial Services Licence to provide independent financial advice to consumers and rebuild trust in the sector.
At a launch event in Sydney on Friday – presided over by ASIC chair Greg Medcraft – CPA chief executive Alex Malley indicated the professional body’s intention to “shake up” the financial advice market with the launch of a new CPA Australia Advice subsidiary.
“As an organisation committed to the public interest, and approaching our 130th year, the CPA Australia board has made the unanimous decision to take action and offer a solution,” said CEO Alex Malley.
“The company we are announcing today will set a new benchmark for professional and ethical conduct in making independent financial advice available to all Australian consumers.
“CPA Australia Advice represents a game changer for financial advice in this country.”
Financial advisers operating under the CPA licence will be required to meet the definition of “independent financial advice” under Section 923A of the Corporations Act, meaning they will not receive any product commissions or asset-based fees.
Mr Malley said the company will also meet the APES 230 accounting standards, and endorsed comments made by ASIC’s chair at a recent National Press Club event.
“There’s no doubt that [Mr Medcraft] was right when he commented at the National Press Club that: ‘as Australians retire they want to be able to go to an adviser that they know is incented to look after their interest and no-one else’s’,” Mr Malley said.
CPA will also seek a credit licence for the new business allowing it to provide “mortgage broking advice”.
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