Australia’s accounting bodies have joined forces to advocate for a more efficient and better harmonised regulatory system for advisers.
Three accounting bodies – CPA Australia, the Institute of Public Accountants and Chartered Accountants Australia and New Zealand – have launched a review of the regulation of financial and tax advice, aiming to reduce complexity in the regulatory frameworks for advisory services.
The chief executive of CA ANZ, Rick Ellis, says one of the lessons revealed in the Hayne Royal Commission report was the extreme complexity of the current framework.
The three bodies will work together to review definitions and licensing regimes in an effort to harmonise obligations where members operate under multiple regulatory frameworks to provide services to their clients.
IPA chief executive Andrew Conway says: “Our shared goal is to reduce the regulatory burden on our members, so we retain financial advisers in the industry.
“For the first time in the best part of two decades we are at risk of creating an advice gap in the market.”
The bodies argue that following years of legislative change, increasing regulation and compliance requirements have become the norm for professional accountants providing advisory services.
This has increased the cost and time burden associated with providing services.
The group says there is a risk that the system will become increasingly complex, as a result of FASEA’s new educational and professional standards, the current review of the Tax Practitioners Board and the implementation of the Royal Commission recommendations.
One of the first areas the group will focus on is how to support and encourage accountants who practice under a limited or full Australian Financial Services Licence to continue providing financial planning advisory services.
The group is seeking member feedback.