CPA Australia has shut down its struggling advice business after a PwC report found demand from members was “insufficient to ensure its financial viability".
The accounting association has announced the results of PwC’s post-implementation review of CPA Australia Advice, which recommend the closure of the flagging advice division.
In a statement posted on its website, CPA Australia said it had decided to exit the advice business in light of PwC’s findings.
“Today CPA Australia Advice has provided notice of the decision to all of its existing authorised representatives and to staff,” said the statement.
“CPA Australia Advice will work with all authorised representatives to transition from the business before the end of the calendar year.”
The PwC report concluded that “demand from members for the CPA Australia Advice offering was insufficient to ensure its financial viability” and found “no evidence to suggest that future demand for the offering in its current form will increase to a financially viable level”.
“Taking into account the uncertainty created by the potential impacts of the Financial Adviser Standards and Ethics Authority, increased regulation and costs, as well as potential outcomes from the financial services royal commission, the board will prudently consider how CPA Australia can be best equipped to support members in the provision of financial advice,” said the report.