Chartered accountants prepare for planning assault
Chartered Accountants will be able to continue using their CA designation even when they do not own their own practices, if proposed changes to the Institute of Chartered Accountants in Australia (ICAA) governance structure get the green light.
Chartered Accountants will be able to continue using their CA designation even when they do not own their own practices, if proposed changes to the Institute of Chartered Accountants in Australia (ICAA) governance structure get the green light.
Under the 75 year old rules, chartered accountants currently need to own an accountancy practice in order to use the designation. It’s a rule which ICAA vice president Geoff Brayshaw says has hindered the formation of professional partnerships.
“Under the present rules if a CA goes into Investor Group for example, he can’t use the CA designation. But in the eyes of the public - and in his own eyes — he is still a CA. He still has the same ethics, the same code of practice.”
The separation of ownership and control would allow those CAs to continue to use the CA designation.
The changes could also facilitate the move of CAs into the financial planning arena. While Brayshaw insists that it’s not the only reason the ICAA is looking at changing the governance structure, he concedes it is one of the reasons.
“Going into financial services is one of the issues and certainly chartered accountants are looking over the horizon rather than risk being stampeded from behind.”
Chief executive officer of the Financial Planning Association (FPA), Michael McKenna, says the association is not concerned about the proposed changes.
“Financial planning is a very specialised field and although accountants are trained in a number of the facets necessary to be a good financial planner there are a number of areas which don’t fall into accounting training, specialist areas which need good financial planning training — and we do that. I don’t see chartered accountants as a threat to financial planners — I believe we can hold our own.”
Recommended for you
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
