CFP designation in line of fire as bodies fail to agree
Talks between Australia's two peak accounting bodies and the Financial Planning Association (FPA) have failed to establish a single designation for the provision of financial planning advice.
Both the Australian Society of CPA's and Institute of Chartered Accountants of Australia (ICAA) have effectively rejected the Certified Financial Planner (CFP) designation as inadequate.
Allen Blewitt, ICAA deputy executive director, says the Institute chose not to pursue the CFP route as it was "not yet at the level that any alliance with us would dictate".
He says the Institute was not comfortable that the CFP would represent an appropriate designation for postgraduate qualified accountants.
However, he says while a strategic alliance has been ruled out at this stage, all three bodies must maintain ongoing dialogue in the interests of the investing public.
He says the Institute is conscious that all three bodies have a common interest in regard to their dealings with government and regulators, and that a split approach on issues could see a "divide and conquer" approach enforced in future negotiations.
Blewitt says the Institute, which represents 32,000 chartered accountants, will pursue its own educational standards to assist members who wish to offer financial planning advice.
He says the ICAA has devised a special interest group to oversee the educational and development requirements of members interested in financial planning. The ICAA will not develop a separate brand or designation, he says.
"We will continue to promote the Chartered Accountant (CA) brand but will probably add the term Specialist Financial Planner for those members who satisfy our standards," he says.
Blewiit says the provision of financial planning advice is seen as a growth area of the future amongst his members in practice.
The rejection of CFP by the accounting bodies is seen as a blow to the FPA's aspirations to establish the marque as a common educational standard in Australia.
Meanwhile, the CFP designation enjoys international acceptance amongst a growing number of nations.
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