Limited financial advice model required - IPA

THE Future of Financial Advice (FoFA) legislation has failed to deliver affordable financial advice, denying many people access to appropriate advice leading into their retirement, according to the Institute of Public Accountants (IPA).

To fill this void, IPA is advocating that all Australians should be able to get limited financial advice and support from their trusted adviser, the accountant.

“The Productivity Commission observed that 48 percent of Australian adults indicated having unmet financial advice needs. So, obviously there is an advice gap in Australia which needs to be addressed” IPA chief executive officer, Andrew Conway said.

“The IPA has developed a revised financial services licensing regime for accountants, which recognises their existing qualifications and experience.

“Our members are answerable to high levels of professional and ethical standards, subject to ongoing quality assurance evaluations, and must maintain currency of knowledge through committed and continuous professional development and training," he said.

“It, therefore, makes perfect sense for public accountants to fill the financial advice void; unshackling them to have genuine discussions with their clients.

“We believe it is the right time to introduce a new, extended Accountants Exemption,” Mr Conway said.

 

About the Institute of Public Accountants

The IPA, formed in 1923, is one of Australia’s three legally recognised professional accounting bodies.  In late 2014, the IPA acquired the Institute of Financial Accountants in the UK and formed the IPA Group, with more than 37,000 members and students in over 80 countries.  The IPA Group is the largest SME focused accountancy organisation in the world. The IPA is a member of the International Federation of Accountants, the Accounting Professional and Ethical Standards Board and the Confederation of Asian and Pacific Accountants.   

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