The Independent Financial Advisers Association of Australia has warmly embraced CPA Australia’s move into the world of Section 923-compliant financial advice.
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”.
The former adviser was permanently banned from providing financial services in 2016.
The Morrison government’s new plan has been met with a mixed response by industry stakeholders.
Wayne Byres discussed the sector at a FINSIA event.
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