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
Sequoia Financial Group has declined by five financial advisers in the past week, four of whom have opened up a new AFSL, according to Wealth Data.
Insignia Financial chief executive Scott Hartley has detailed whether the firm will be selecting an exclusive bidder for the second phase of due diligence as it awaits revised bids from three private equity players.
Insignia Financial has reported a statutory net loss after tax of $17 million in its first half results, although the firm has noted cost optimisation means this is an improvement from a $50 million loss last year.
With alternative funds being described as “impossible” for fund managers to target towards advisers without the support of BDMs for education, Money Management explores the evolving nature of the distribution role.
