FoFA is fine, but further proposed regulations will reduce the ability of consumers to access “competent and affordable financial advice”.
This is the assessment of the Institute of Public Accountants (IPA), as it rallies against the the Accounting Professional and Ethical Standards Board’s (APESB) failure to make “substantive changes” to the proposed standard APES 230 Financial Planning Services.
“While transitional arrangements and minor concessions are welcome, we still believe the standard will not be in the best interests of our members, the accounting profession and importantly, not in the best interests of consumers," said IPA CEO Andrew Conway.
The IPA is a FoFA supporter – stating that these reforms will provide consumers with greater choice and access to competent and affordable financial advice, and improve the standing of the financial advice sector – but believes that APES 230 goes too far.
“Our primary concern is that APES 230 reduces the ability of consumers to access competent and affordable financial advice from their trusted adviser, their accountant,” said Conway, who added that the IPA plans to issue a pronouncement to replace the APES 230 standard, which it claims will be consistent with the requirements under the FoFA reforms.
“This will ensure our members are able to continue to provide high quality affordable advice to their clients," he said.
The end of IFAs?
Tear it up, stick it with FoFA