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CPA Australia enters IFA market

Joint accounting body CPA Australia will launch a financial planning business in a move it says will “shake up” the advice sector.

CPA Australia Advice Pty Ltd has been set up as a wholly-owned subsidiary of the association in order to provide “pure and transparent fee-for-service” advice to consumers.

CPA advisers will not take commissions of any sort or other “hidden incentives”, a statement from the accounting body said, including asset-based fees.

“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,” said CEO Alex Malley.

“The company we are announcing today will set a new benchmark for professional and ethical conduct in making independent financial advice available to all Australian consumers.

“CPA Australia Advice represents a game changer for financial advice in this country.”

The advice business will operate in compliance with the Corporations Act definition of “independent” advice, the statement said.

CPA will now commence the process of applying for an AFSL and ACL.

ASIC chair Greg Medcraft is officially launching the business in Sydney today.