IPA to develop APES 230 alternative
The Accounting Professional and Ethical Standards Board (APESB) has found itself solidly at odds with key accounting groups over its decision to proceed with the implementation of APES 230 with only minor accommodations.
The Institute of Public Accountants was among the bodies to most forcefully reject the APESB approach, saying it was not in the interests of its members and vowed to "issue a pronouncement to replace the APES 230 standard".
The IPA said it intended that the standard it would issue would "be more consistent with the requirements under the Future of Financial Advice (FOFA) reforms".
The major difference of opinion between the APESB and the key accounting bodies has emerged out of the board's failure to fully take onboard submissions around remuneration arrangements.
The APESB provided only limited accommodations reflecting those submissions, announcing that the new standard would allow members to accept trailing commissions for Financial Planning Services entered into prior to 1 July 2013 in respect of life insurance, other risk contracts and the procurement of loans, as long as the member does not subsequently provide further services in respect of those contracts or loans.
As well, the standard will allow the provision of professional development for members from third parties, provided such activities are Future of Financial Advice (FOFA) compliant.
However the IPA said that APES 230 in its current form reduced the ability of consumers to access competent and affordable financial advice from their trusted adviser - their accountant.
Publication of the APES 230 framework led to warnings from accountants that it might trigger an exodus from the major accounting bodies which sought to impose its strictures.
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