In a statement, the accounting body said its wholly owned subsidiary CPA Australia Advice now holds a financial services licence as well as an Australian Credit Licence (ACL).
CPA Australia and CPA Australia Advice chief executive Alex Malley said: “We are very pleased that ASIC has confirmed CPA Australia Advice has been granted its AFS licence and ACL.
“It is the critical next step for us as we work towards being operational by 1 July this year.”
Mr Malley said the new advice business will be independent and act as an alternative to the big banks and financial institutions.
“Independence is at the heart of CPA Australia Advice. Our operations will be consistent with Section 923A of the Corporations Act 2001, which allows us to use terms like ‘independent’, ‘impartial’ and ‘unbiased’ when referencing our services,” he said.
“We are about putting an end to conflicts of interest in financial advice […] Our offering – no commissions, no hidden incentives, no asset-based fees – is something these big banks just can’t compete with.”
ifa reported earlier this month that CPA had unveiled its licensing options, which include a $1,760-a-month solution for “comprehensive advisers”.
“Over the past few months we have been holding information sessions with our members around the country explaining how CPA Australia Advice will operate,” Mr Malley said.
“The response has been overwhelmingly positive and now that the licences have been granted, we will be able to continue working with our members who are interested in becoming Authorised Representatives of CPA Australia Advice.”
Gavin, I completely agree with you, wasn’t arguing that fact. Just pointing out that FOFA did allow commissions. If they are stating they will meet the Corporations Act definition of Independent, then they must not be allowing insurance commissions either.
So yes, will be interesting to see how clients react to the hourly rate charge.
This is hillarious. A licensee claiming to be ‘independent, impartial and unbiased’ will consist entirely of authorised reps who sign up for one reason – so they can flog their own, in-house SMSF services!
Preaching self righteously from a soap box will only get them so far. The real challenge will be in the quality of their advice and how they manage client relationships and ongoing research. This is a very different business to once a year tax returns and audits. I am looking forward to seeing their advice documents and what they promise for the fees they propose.
Going to sit here on the sideline with a box of popcorn and watch how this all plays out…
[quote name=”AJ”][quote name=”Laurie Pennell”]FOFA doesn’t permit the payment of commission to any adviser so stop trying to imply that you are better than anyone else. [/quote]
Incorrect, FOFA allows the payment of commissions from Insurers, which is what they will be referring to[/quote]
In that case lets see what clients will do when presented with a rigid $440/hr fee for providing life insurance advice…or will these be loss leaders in exchange for other services provided?
[quote name=”Laurie Pennell”]FOFA doesn’t permit the payment of commission to any adviser so stop trying to imply that you are better than anyone else. [/quote]
Incorrect, FOFA allows the payment of commissions from Insurers, which is what they will be referring to
lets just ignore the elephant in the room, CPA advisers recommending SMSF establishment that their related accounting practices will provide Asmin or Audit functions isn’t a conflict of interest or disclosure required benefit. If I don’t allow our Accountant advisers to use the independent term even though we don’t accept commissions why should the CPA’s be able to?
I doubt there would be “overwhelming” support from those members who already operate their own licence. Talk about an ivory tower attitude which basically implies those who have their own existing licence are not doing the best for their clients. How conceited. FOFA doesn’t permit the payment of commission to any adviser so stop trying to imply that you are better than anyone else. I am a member of the CPA as well as the Institute and FPA and don’t like the way that CPA Australia are promoting this against their members. I will continue to vent on this as Professional Associations should not be competing directly with their members own business. No support from me on this.