Anger as FSR bites accountants

TheInstitute of Chartered Accountants Australia(ICAA) has warned that accountants moving into financial planning for the first time should not expect to achieve full profitability for the first 18 months and that unless they become licensed, they will not be able to give product advice.

ICAA financial planning consultant Craig Dangar has warned the association’s members that financial planning “will not be a pot of gold” for accountants who walk into it for the first time.

ICAA technical adviser Keith Reilly says the ICAA is quashing the perception that by becoming licensed, accountants can benefit by recommending self-managed super funds and picking up the trailing commissions from the products.

He says this may discourage chartered accountants (CA) from becoming financial planners, along with the training and compliance costs, but it will also be the price CAs will have to pay if they want to give advice.

In fact, Dangar has ruled out advice over the dinner table “unless you can call yourself a financial planner”.

However, the comments have angered members with many hitting out at the association’s Financial Services Reform Roadshow claiming that under the incoming regulations they will be unable to act in many ways.

While discussing the merits of remaining unlicensed and refraining from giving product advice, one audience member said: “So as a professional, our opinion should be no opinion. That’s a dichotomy. Why don’t we just give up and go home.”

Dangar has downplayed the issue stating that accountants can make the move into financial advice.

“If you want to, the move into financial planning is not that tough. You cover most of it already. Ninety-nine per cent of your activity will see no change,” Dangar says.