CPA Australia has hit out at what it calls “scaremongering” about the Declared Professional Body (DPB) exemption contained in the Financial Services Reform Bill (FSRB).
CPA Australia financial planning industry adviser Kathy Streeter accused some industry associations of creating “confusion” over the DPB exemption, which allows members of professional bodies to be exempted from certain licensing requirements under the FSRB.
Streeter says the associations are creating the impression that accountants are being given a “carte blanche” under the proposed legislation.
She says the legislation does not give accountants free reign, rather that it opens up a system of co-regulation.
“Obviously this is a Bill and it is our interpretation, however the proposal is for a co-regulating role and ASIC will still have control,” Streeter says.
CPA financial planning consultant Brad Pragnell says the DPB exemption is aimed at clearing up confusion over incidental advice.
“It is not trying to request anything new, instead it proposes to clear the grey zone surrounding incidental advice,” he says.
CPA Australia is confident that the DPB components of the Bill will be passed.
“A lot of hurdles seem to be overcome. It is extremely positive that the DPB is in the Bill and supported by the senate commission, as co-regulation is an issue that stems from way back,” says Streeter.
The Financial Planning Association (FPA) however, believes that more than one regulator will dilute consumer protection.
FPA public policy manager Con Hristodoulidis says there can only be simplicity with one regulator, and believes that requirements under the DPB are not as stringent as under the current licensing regime.
“The inconsistency is a concern. There will be two different types of financial advisers, two different regimes, and two different levels of skills,” he says.
The association has been told by Senator Andrew Murphy to wait until the draft bill is introduced before taking any action.
Count Wealth managing director Barry Lambert is not too concerned about changes the DPB may bring, and says the company is already set up to meet challenges.
“Our training standards are already accredited. Accountants are a dominant force in the industry and are confident of the support they give.”
Responding to the feelings of opposition to the DPB, Lambert describes it as “just the competitive nature of people.”
