ASIC approves CPA Australia’s AFSL
ASIC has approved CPA Australia's application for an AFSL – an important step for the group as it builds out an "independent" financial advice division.
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."
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