In a statement, IFAAA president Daniel Brammall said the entry of the accounting body will have broad benefits for the industry and “add momentum to the professionalisation” push.
“Genuine independence is a very valuable asset for a financial services practice because it’s the hallmark of professionalism,” Mr Brammall said.
“This quite rightly inspires trust. But with independence comes responsibility.”
Mr Brammall said the IFAAA is opening its doors to CPA advisers who may be interested in meeting the association’s Gold Standard of Independence accreditation.
While some in the advice industry consider IFAAA members “purists”, Mr Brammall said the Gold Standard has been well-received by consumers and regulators.
He also warned that use of the word “independent” without meeting the criteria set out in Section 923A of the Corporations Act is illegal.
“Trying to get mileage out of the word ‘independent’ without actually practising [independence] is potentially misleading, we believe,” he said.
The comments come as an ifa editorial has hailed the CPA move as a “win for the independent advice movement”.
When I worked inside an accounting firm a few years ago, one of the partners was giving the client some fairly complicated business structuring advice. After we left the meeting I asked him if he was going to follow that up in writing. He replied that he never put anything in writing because that’s how you got sued. If the strategy didn’t work his solution would be to tell the client they misunderstood what he said and they just didn’t implement it right!!
You think you’re going to hear from the other associations on this Laurie?
I agree with you though, the IFAAA isn’t an industry association – it’s a professional association. It’s part of the profession, not the ‘industry’.
And yes, I have a very high opinion of my fellow IFAAA members. If we happen to be at the same function one day, let’s do our best to avoid each other.
Laurie, no need to be nasty. An association is an association no matter the size. Would you call your business a loose group of life insurance agents in country Victoria?
What rubbish. The so called IFAAA is not an industry association. It is a loose group of financial planners with a head who has an inflated opinion of himself and his group.
Let’s hear from real associations who represent more than 16 advisers!!
I also applaud it…
For years accountants could get away with ‘advice’ that was at best scribbles on a sheet of paper that clients blindly followed. This will level the playing field somewhat.
Will be interesting to see how many accountants can change their mind set and comply with all our documentation requirements, what they will have to charge their clients and ultimately how fully compliant this CPA licence is going to be.
Having professionally dealt with numerous accountants (some very good and some very bad) I honestly think this will develop into a major headache for both the CPA and ASIC in future years – especially when the complaints invariably begin to flow in (with that many numbers of members it is unavoidable).
Interesting times ahead.