Reg costs passed down to accounting clients


Some professional accountants who provide financial planning advice have had to pass on regulatory costs to clients and a framework is needed that encourages advisers to provide more affordable advice, according to CPA Australia.
CPA Australia said it welcomed the Australian Securities and Investments Commission (ASIC) affordable advice consultation and would make a submission.
It noted that accountants that provided financial planning advice had to commit “significant additional resources to meeting their compliance obligation, the cost of which may be passed onto their clients”.
CPA Australia’s general manager external affairs, policy, and advocacy, Dr Jane Rennie, said: “Professional advisers have faced increasing regulation and compliance requirements in recent years. This has increased the cost and time burden of providing advice and driven many advisers from the sector.
“We need a regulatory framework that encourages professional advisers to provide more affordable, independent, high-quality advice – not less.”
Rennie said the lack of affordability and accessibility was a barrier to receiving personal advice and was forcing Australians to “go it alone” when it came to managing their finances.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.