Mr Malley says up until 20 years ago, advice was solely the domain of accountants.
“[It was around] then that others came into the profession, into the financial planning area, and as a result, that brought other people into the advice market,” Mr Malley told a recent CPA Australia conference.
“[Recently] I referred to the financial services sector these days being the largest circus tent in town.
“[ASIC commissioner] Greg Tanzer mentioned [at the CPA National SMSF Conference] some of those people that we’d hate to think of as part of our financial services sector given their behaviours, but effectively the financial services sector is defined today as anyone who’s an agent for insurance at one end and the quadruple degree at CPA at the other, and we’re all under this banner of financial services advice.”
Mr Malley said the accounting profession must now decide whether “to take the leadership in this area – what we call reclaiming our territory”.
He acknowledged there were some challenges ahead for the profession in achieving this.
“The regulations have changed, and I have said to various ministers and regulators over the past 12 months to just spare a moment for accountants that have given the same advice to the same client for the past 30 years and now can’t give them the same advice,” Mr Malley said.
“We recognise how challenging that is, but we also recognise that we have sent extraordinary amounts of communications about this.”
Mr Malley said it is also important to understand how politics is impacting on regulations as well.
“The politics that is impacting on regulations is quite profound. Every time a politician of any persuasion gets up and says they’re going to protect the world from everything, all the time, it puts more and more pressure on the regulator,” he said.
“It’s important that our voice becomes stronger and stronger in the public eye, so we can ensure there are some sensibilities in what you inherit.”
I think the regulators did spare a thought for the accountants giving the same advice for the last 30 years.. they thought they screwed it up, put their own interests first, lined up funds on either end of the table and swapped sides with their mate to sign off on audits and left people with low balances in expensive fixed cost SMSF’s with no insurance.. the regulator spared a thought.. and then they fixed it.
maybe because they (CPA & ICAA) knew, and more importantly ASIC showed them that they knew as well, that their members had been operating outside of the law since the introduction of the FSRA
yes i hardly think the accounting profession covered itself in glory with the Guvera music streaming debacle…thousands of accountants ‘advised’ their SMSF clients into this pre-float ‘opportunity’ without disclosing any kickbacks, only to have the ASX scuttle the listing because it didn’t pass the pub test…
How can any of the CPA’s new AFSL compliance be taken at all seriously by ASIC or the public when the head of the CPA clearly doesn’t understand the past Accountants Exemption, past or present AFSL laws. What an absolute joke is the CPA’s entry into an AFSL to oversea their Authorised Reps.
A Degree or multiple Degree’s makes you well educated…….but not necessarily clever. As a registered CPA member (who does not work in tax or accounting), a Financial Planner, a Credit Adviser and with 36 years working within the Financial Services industry I know first hand that Accountants physically cannot be masters at all 3 professions as all 3 are highly specialised, highly complex and take a lifetime to master. Therefore I cannot support Mr Malley’s views. Historically, public perception was such that “The Accountant” was considered to be “The Oracle” of all things financial however, in this highly complex post-modern world with multiple levels of regulation, competition, globalisation, legislation, product spread, etc, etc this is in my opinion rarely possible. I have seen countless instances of accountants doing a great job doubling as Financial Planners due to their knowledge of tax, but making an absolute mess of Credit and Lending, simply because there was too much knowledge that needed to be known. I believe a Financial Services professional of whatever sub-sector, be it accounting, financial planning or finance, can do one sub-sector exceptionally well, the 2nd reasonably well, but the 3rd would be a hack job……I’ve seen it too many times. Sorry Mr Malley but accountants cannot be all things to all people.
How is the CPA Qualification a Quadruple Degree?
With respect, Mr Malley, where was the CPA (and ICAA) when this whole matter was being raised? Had both bodies put up a (public and vigorous) opposition to the FOFA regulations as they applied to accountants, the politicians would not have risked it.
Instead, “our representatives” at those discussions, for what ever reasons, decided to not raise a ruckus. Very poor representation for the membership.
The result now is that the vast majority of accounts have been excluded from the super advice arena. The accounting bodies should be ashamed.
Sounds like sour grapes Alex. Accountants finally being made accountable for the advice they give……
Ah Mr Malley, besides the actual set up and close down of a SMSF, the rest of the AFSL advice you say accountants have been giving for years was illegal AFSL advice around SMSF contributions, pensions, death benefit nominations, etc all done with zero AFSL compliance.
It is astounding the lack of understanding among accountants right up to the highest level of their associations that they have been giving illegal AFSL advice for many years, none of that has changed.
When will CPA, SMSFA, etc actually tell accountants they have been acting out side the rules for years, they just don’t get it at all ???
Well, the CPAs certainly know how to recommend trees and apartments to their clients….