The Institute of Chartered Accountants (ICA) has backed calls by Minister for Superannuation and Corporate Law Nick Sherry to review the level of licensing of accountants who provide financial advice.
The minister intends to place licensing of accountants back on the agenda, an audience at an Association of Financial Advisers event was told earlier this week.
Sherry’s comments came less than a week after Great Southern announced its collapse. Fellow agribusiness Timbercorp folded in late April.
“The institute is pleased that it has been recognised by the government as an essential organisation to be involved with in the current reviews and enquiries into the financial services sector,” ICA head of financial planning and superannuation Hugh Elvy told InvestorDaily.
“The institute believes that for a sustainable, long-term future the industry needs to collectively recognise the need to remove remuneration models, which are based on percentages, and replace them with genuine fee-for-service arrangements that have no connection with products or investable funds.”
Elvy said that even prior to Sherry’s announcement, the ICA advised its members of the potential change to accounting licensing laws.
“Now more than ever, it is vitally important that financial advice is of the highest quality to ensure it benefits and protects consumers purchasing financial advice,” he said.
“This is a priority for the institute and we will be working with government in this regard.”
