APESB reconsiders reforms
The Accounting Professional and Ethical Standards Board (APESB) has put the brakes on its proposed reforms for accountants practising as financial planners.
Due to the “unprecedented response” to the APESB’s exposure draft, chairman Kate Spargo (pictured) said the board would now take some time to evaluate the issues raised by stakeholders.
One such issue was the proposed requirement for accountants who provide financial advice to adhere to a strict fee-for-service model that excludes both commissions and any form of asset-based fees.
Spargo said that the APESB would now consult with stakeholders to come up with a definition of ‘fee-for-service’, as well as reconsidering the ‘retrospective effect’ that was to apply to trailing commissions.
The proposed date of the reforms, which was scheduled for 1 July 2011, will also now be pushed back to a later date.
“A new start date for the standard will be announced following the review of submissions and completion of the APESB due process,” Spargo said.
“We want to give the industry sufficient time to be able to address any changes, including changes to business models and systems as a result of the proposed new standard,” she added.
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