CPAs hit industry for $12.5 million to launch dealer group

One ofAustralia’s peak accountancy bodies, CPA Australia, has asked groups tendering to provide the organisation with back-office services for its newly proposed dealer group, to help finance its venture with a multi-million dollar cash injection.

It is understood CPA Australia has asked the group that wins the tender to become the sole platform provider to kick in between $12-$12.5 million towards the establishment of the dealer group.

Money Managementhas confirmed the industry body has approached some of Australia’s most renowned master trust and wrap providers with the deal.

CPA Australia has claimed the dealer group would be an independent alternative for accountants looking to move into financial planning.

But a number of groups involved with the accountancy body have toldMoney Managementany arrangement that results in CPA Australia accepting capital funding from an outside group could see its claims to independence seriously tainted.

CPA Australia financial plannig manager Kathy Bowler last week did not want to comment on the specifics of the tender arrangements.

The funding issue arises at a time when questions are being asked regarding the viability of the proposed dealer group.

According to CPA Australia, up to 5,000 of its members have registered an interest in moving into financial planning.

But critics are arguing the association’s dealer group will attract only those accountants considered not viable enough to join other commercial dealer groups.

The criticism comes despite CPA Australia’s insistence that it would charge accountants a fee to join the dealer group, weeding out those accountants not consdered viable.

CPA Australia is aiming to make a final decision on whether to proceed with its plans to launch the new dealer group in the latter half of this year.