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A survey of the Chartered Accountants Australia and New Zealand membership revealed 60 per cent of accountants providing financial advice will drop the offering if new education regulations pass in their current form.
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60% of CAs to ditch advice if new education changes pass
19 September 2018
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A further 20 per cent said they were undecided about their future in financial advice.
A host of new education requirements, set by the Financial Adviser Standards and Ethics Authority (FASEA), will be imposed on existing and new accountants and advisers who provide financial advice by 2024.
Many accounting-related degrees are listed as related degrees, not approved degrees, under the new standards. This means accountants eligible for the transitional arrangements will need to complete a bridging course of up to three units of study to meet the new standards.
The units will likely cost around $10,000 to complete.
As it stands, there is also no distinction between accountants with a full or limited AFSL, meaning accountants providing basic SMSF set-up services will be required to complete this additional training.
For those with a limited AFSL who plan to continue providing basic SMSF services, the additional units of study aren’t superannuation-specific.
Further, FASEA’s guidance is yet to be finalised. A final position is expected next month, which is just three months out from January 2019, which is when an accountant needs to be licensed under an AFSL to qualify for transitional concessions.
“The feedback we have received from members is that if FASEA doesn’t respect what Chartered Accountants have already completed and undertake on an ongoing basis, then many will reconsider their future in the industry and will likely exit,” said senior policy adviser at CA ANZ Bronny Speed at the CA ANZ National SMSF Conference in Melbourne.
She added: “Acknowledging the hard work that is required to gain and maintain their CA membership, which includes a TEQSA-approved AQF 8 postgraduate qualification and continuing professional development obligations, will mean Chartered Accountants can continue their work as trusted advisers.”
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