Earlier this week, the NTAA issued a public statement which told consumers to seek advice from an accountant rather than a financial planner and used scathing language to describe the planning profession, saying it was “bereft of integrity”.
Speaking to ifa, shadow minister for financial services Mathias Cormann criticised the accounting industry body for its public comments.
“Such a blanket attack on the professionalism of an entire industry which has worked very hard to keep improving, particularly in recent years, is reckless and irresponsible,” Senator Cormann said.
“Financial planners and advisers provide a very important service helping people to improve their financial health and well-being by managing financial risks and maximising opportunities.
“Overwhelmingly the industry operates at a very high standard with planners and advisers totally focused on and committed to the best interest of their clients.
“There is always room for further improvement, and I’m confident that the current high standards will continue to increase into the future.”
At a parliamentary joint committee hearing in June, Senator Cormann spoke out against the “turf war” between accountants and financial planners in the financial services industry.
The Financial Planning Association and Association of Financial Advisers have also responded strongly to the NTAA comments.
I’ve owned an accounting practice for ten years & been a CFP for 20 years. Facts 1. NTAA represent that group of accountants whom couldn’t academically qualify as CA or CPA – its full of fossils. 2. Suggesting accountants give Financial Advise is the same as suggesting a solicitor to give Financial advice. Sure Financial planning touches on tax as it does with law, but it doesn’t mean an accountant or solicitor knows what a Financial planner knows. Most reputable accountants I know admit up front that they cant give Financial Advise – NTAA you are a disruptive joke!
I agree with Cormann however he forgot to say that the NTAA is not even a real body of accountants. CPA & CA are the only true accountants.
It hasn’t pulled the NTAA into disrepute.
The results that ASIC have published stating their concerns as to the lack of quality and care, and the evidence of the lack of concern for the client’s needs when they are supposed to be competent in ‘KNOWING THE CLIENT’, scares a lot of people. Also the ASIC results are not the exception when you read their reports.
However not everyone fails in this area but it can’t be ignored.
Its time the NTAA stood up and repudiated the comments. It also pulls the NTAA into disrepute if they do not respond.
what is a real shame is the “public statement” was given airplay in the first place, it only got attention because it was published it was not published then it would only have received limited exposure that the NTAA could attract itself, that said I suspect they wish they could retract it now
ASICs comments on the review and audit of Financial Planners activities give credence to the NTAA’s comments.