A CPA spokesperson said the decision to apply for an Australian Credit Licence will allow relevant members to provide more comprehensive financial advice services to consumers, including mortgage broking.
“The decision to apply for an Australian Credit Licence is to enable the provision of holistic advice when discussing a client’s financial affairs, which will often include the review of personal debt when assessing cash flow,” the spokesperson said.
“Members who are authorised to provide credit advice will be able to provide mortgage broking services. We envisage such services will be one element of the credit and overall advice offer.”
While the accounting body has already announced it will apply for an ACL with ASIC, these comments are the first indication CPA intends a number of fully-fledged mortgage brokers to operate under its licence and new entity, CPA Australia Advice Pty Ltd.
The spokesperson said all advice and services provided under the ACL will be on a fee-for-service basis.
“If there is a commission payable when a loan is placed, this commission will be rebated to the client – in full,” they said.
Accountants who are authorised to provide credit advice services may have an edge over market competitors since, in many cases, they are already their clients’ trusted adviser, the spokesperson added.
“There are already professional accountants who are licensed to provide valuable advice in regards to mortgage broking and consumer credit services,” they said.
“The value of such services is the advice that they provide is underpinned by their broad finance, structuring and tax expertise.”
I hope the CPA takes into account the cost of managing ongoing rebates for loans and insurances.
The costs would more than likely outweigh the rebates to clients. There would be a need for new staff and on-costs of that HR in the monthly rebate of commissions.
Good for positioning and marketing BUT….?
Is this just knee jerk management again, in order to be politically correct or to be seen as such.