The number of accounting licensees with financial advice qualifications could more than double once the government unveils legislation set to replace a financial planning-related exemption, according to the Joint Accounting Bodies (JAB).
Institute of Chartered Accountants of Australia (ICAA) head of financial advisory services Hugh Elvy told a Parliamentary Joint Committee (PJC) hearing the accounting industry was awaiting the aspect of the Future of Financial Advice (FOFA) reforms that would replace the so-called accountants' exemption.
The exemption allows accountants to provide advice on setting up self-managed superannuation funds.
Elvy, speaking on behalf of JAB, said once the government unveiled regulations to replace the exemption, the clarification could attract a "significantly increased" number of members of the accounting profession to the financial advice industry.
JAB is made up of the ICAA, CPA Australia and the Institute of Public Accountants. The body represents 180,000 accountants in Australia and offshore.
The figure includes 40,000 licensees and, within that number, 6000 licensees are qualified financial advisers as well as accountants.
"We estimate that, potentially, there'll be 5000, maybe 10,000 new licensees [getting financial advice qualifications] as a result of the replacement for the accountants' exemption," Elvy said.
Asked about the timeframe, he said: "It may well be over the next two to three years."
A report by Rice Warner Actuaries has estimated the industry would shrink by nearly 7000 advisers by 2024.
PJC chairman Bernie Ripoll seized on the figure, remarking that previous industry participants had warned of deep shrinkage in adviser numbers if certain aspects of FOFA passed into law.
"We've heard there'd be a reduction in numbers," Ripoll said to Elvy.
"That's not your view?"
Elvy said: "No doubt as a result of FOFA, there will be some [advisers] who say it's too hard and move on, but currently in terms of the net position, I really don't know.
"In terms of the accounting industry's perspective, we believe there will be a significant uptake over the next couple of years into that area."
