Accountants look at dealer’s licence
One ofthe two peak accountancy bodies,CPA Australia, is looking at securing its own unrestricted financial services licence in a bid to support members moving into financial planning, potentially creating a new financial planning giant.
Announced at the CPA Australia Financial Planning conference last week, the group also relaunched its financial planning designation, the CPA Financial Planning Specialist (FPS).
CPA Australia financial planning manager Kathy Bowler says the unrestricted licence would allow the accountancy body the ability to offer a wide range of financial planning services to those members who are currently involved in, or planning to move into, financial planning.
If this occurs, CPA Australia would become the second largest dealer group in the country, eclipsed only by AMP, who, at present through Hillross and AMP Financial Planning, has more than 1,800 planners on the books.
At present, 3,000 members of CPA Australia are already providing some form of financial planning.
Bowler says that internal surveys have found that up to 5,000 are interested in doing so out of a membership of 95,000. To gain the FPS designation each member must first apply to the group and pass an exam.
Bowler says at present the CPA Australia believes that when the structures are in place, about half of the current financial planning practitioners would seek the new designation.
However, Bowler says these plans will take some time, as the CPA Australia is seeking tenders for the provision of a number of financial planning services, which includes research, software and paraplanning services. The plans for a licence hinge on finding providers for these financial planning services.
“We will not set up our own, but rather use our purchasing power to provide these to members. We will keep the business development and marketing within CPA Australia as that is one of our strengths, but we are looking to provide outsourced back-offices services in a modulised form,” Bowler says.
“This is a massive move for a professional organisation and if the intention is to be licensed, we will need to have outsourced services. This project is still very much in its early stages and a final decision will not be made until completion of the tender process later this year.”
AUTHOR
Jason Spits
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