The Institute of Chartered Accountants (ICAA) has sought to put recognition of accountants as trusted financial advisers high on the list of priorities for the next Federal Government.
In a white paper released this week titled "Future", the ICAA has acknowledged the manner in which recent Government policy has been directed towards ensuring the provision of financial advice to consumers is delivered within a strong regulatory framework, but says the more important objective should now be improving community trust in the financial services industry.
"The responsibility to rebuild this trust is two-fold with the consumer and the financial services providers," it said. "Currently, consumer responsibility is limited by low financial literacy and in some cases outright apathy, due to the complexities of what individuals believe they need to know.
"Consumers — in the majority of cases — are simply looking for a trusted source of advice. This is an area where professional accountants, such as Chartered Accountants, have generally been able to play a key role," the white paper claimed.
It said, "An incoming federal government should therefore take steps to ensure that policy frameworks recognise the fundamental and core role played by professional accountants in the community as trusted advisers who assist households to navigate their way through complex financial issues with independent and non-biased advice".
Elsewhere in the white paper the ICAA also supported encouraging people against unduly accessing superannuation lump sums, but urged against an overly prescriptive approach.
"Proposals have been put forward to address this issue, including amendments to how Australians are able to withdraw their savings from the super system by limiting the amount an individual is able to withdraw as a lump sum," it said. "Being overly prescriptive may have a significantly detrimental impact on the system because it would have the potential to act as a disincentive to people voluntarily participating in the super system."
The white paper argued that the development of "attractive and accessible pension and annuity products, greater levels of consumer education, and tax incentives to promote the use of pensions is a better approach".
