Joint accounting body CPA Australia has announced that they will launch an independent financial advice business.
CPA Australia claim the new financial advice business aims to shake up the financial advice sector to become “a new benchmark for professional and ethical conduct.”
The initiative CPA Australia Advice Pty Ltd will be set up as a
wholly-owned subsidiary of the CPA and was launched last week with ASIC chairman Greg Medcraft appearing alongside CPA Australia CEO Alex Malley.
CPA Australia made a statement claiming that their financial advisers “will not take commissions of any sort or other hidden incentive.” CPA Australia CEO Alex Malley said “as an organisation committed to the public interest, and approaching our 130th year, the CPA Australia Board has made the unanimous decision to take action and offer a solution.” The initiative, Malley says, “represents a game changer for financial advice in this country.”
With some industry stakeholders expressing their disapproval of ASIC’s involvement, accusing them of showing bias, the corporate regulator has defended their involvement with the launch shrugging of claims of any impropriety. ASIC chairman Greg Medcraft describing the launch as a “bold initiative” and praised CPA Australia for taking the initiative to improve the quality and
access to financial advice.
CPA says the financial advice business will be compliant with the Corporations Act definition of independent advice, and will commence the process of applying for an AFSL and ACL.