The Government needs to understand the impact of its over-regulation of the financial planning and accounting sectors and, in particular, the impact on what amount to small and medium-sized businesses, according to Australian Wealth Solutions principal, Sam Zervides.
However, he said the growing calls for government to stop interfering, over-regulating and irreparably harming the important financial planning and accounting sectors were continuing to fall on deaf ears with the economy, employment and consumers equal losers.
Zervides said planners and accountants could accept the decline in their livelihood if it was the result of new technologies, outsourcing, overseas competition or product innovation but it was a bitter pill to swallow when it was the result of relentless and incoherent reform and imposition of government red tape, over policing and escalating compliance costs.
“Costs that are making the provision of affordable professional financial advice and services harder and harder to provide for clients are simultaneously driving practitioners out of the industry,” he said.
“The financial planning and accounting professions are predominantly comprised of SMEs. Collectively they’ve been severely impacted by government-initiated reforms with the large institutions, fund managers and industry funds the major beneficiaries. “
Zervides said it appeared the legislators and advocates of industry reform had no appreciation or regard for the damage they were inflicting and the legacy being left in their wake.