The Institute of Public Accountants (IPA) is understood to be already benefiting from its decision to plot its own course on APES 230, with the organisation fielding increased membership inquiries.
Money Management understands that growing concern among accountants that the Accounting Professional and Ethical Standards Board (APESB) will not cede sufficient ground on its proposed APES 230 standard has prompted them to look at the IPA option.
This is because the IPA, which is less constitutionally constrained by the APESB, has decided it will issue its own standard to replace APES 230 — one which is much more closely aligned to the Government's Future of Financial Advice (FOFA) standard.
An IPA spokesman said that while IPA membership had, indeed, risen in the past 12 months, this was not solely attributable to the APES 230 developments and had followed a rebrand and other initiatives.
However, IPA membership had risen by 30 per cent over the period, and by 25 per cent in terms of practices.
It is understood that both CPA Australia and the Institute of Chartered Accountants (ICAA) have continued their lobbying and discussions with the APESB around the APES 230 standard but have yet to find agreement on key issues.
The concern among accountants is that the APES 230 standard, as outlined by the APESB late last year, goes substantially further than the FOFA requirements — something likely to place accountants at a commercial disadvantage in the financial planning space.
After pushing back implementation dates in January, the APESB was expected to deal with the APES 230 matter at its February board meeting, but the issue was ultimately left off the agenda. The APESB will next meet in May, but the board papers are not yet available.
In his most recent discussion of the situation, IPA chief executive Andrew Conway said the IPA had been a member of the APESB since 2007 and remained committed to its work.
"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," he said. "The IPA will move to issue a pronouncement to replace the APES 230 standard, which 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."
