Accounting bodies take aim at financial planners
A recent newspaper advertisement that equates financial planning with the sale of financial products misunderstands the role of advisers, says Association of Financial Advisers (AFA) chief executive Richard Klipin.
The open letter, run in the Australian Financial Review late last week, was co-signed by CPA Australia chief executive Alex Malley and Institute of Chartered Accountants in Australia chief executive Lee White.
The letter urges the Government to announce the details of the replacement to the accountant's exemption, arguing for a "new and simpler regime" that will give Australians "access to high quality advice". The letter continues:
"This kind of advice is distinct from selling financial products, which is the domain of the financial planning industry."
Klipin empathised with the frustrations of the accounting bodies in their negotiations with the Government, but he objected to their description of the planning industry.
"They seem to have misunderstood the role of financial advisers, who provide strategic advice to their clients … Selling products takes us back to pre-FSR days, and last century," said Klipin.
Many accountants are also members of financial planning industry bodies, so the accounting bodies are effectively attacking some of their own members, added Klipin.
"It's quite clear that many accountants are authorised through the various industry bodies, and it's also true to say that many advisers are accountants. And they are in the profession of providing strategic advice. I'd imagine they'd be concerned by being considered as financial product salespeople," Klipin said.
The full advertisement is available on the CPA Australia website.
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