Do lawmakers understand the damage to accounting and planning?

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. 

Related News:

“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.  

Recommended for you



Finally......thank you but its too late, I fear, as the reform process is way out of balance with many they were trying to assist being the long term losers.

This person seems to be advising from a bubble. Even the banks are admitting malfeasance. His inane comments indicate to steer clear of his company.

The only ones denying malfeasance and yet blithely persisting with it are your union masters Hedware. At the same time as everyone else is cleaning up their act, your union funds are implementing fee for no service under the deceptive name of "intra fund advice". You are shoehorning unsuspecting employees into your funds via entertainment based graft of HR managers. You are delivering "workplace advice" via conflicted salespeople. You are rapidly becoming AMP 2.0

Amazing. Here is a piece that had nothing to do with unions or intra-fund fees but you managed to miss the whole story and to regurgitate your usual beef.

The challenge in complaining about over regulation is that it is often perceived as a call for complete deregulation. But that is definitely not the case. Most professionals do recognise and welcome the need for appropriate regulation. However when that regulation becomes unnecessarily complicated and duplicated, consumers ultimately end up being worse off.

Financial advisers are currently regulated by ASIC, TPB, Austrac, AFCA, FASEA, and the Privacy Commissioner. In November there will be a Code Monitoring body, and next year Frydenberg's newly announced disciplinary body. This is way too many regulators. They overlap and they conflict. They create unnecessary cost and complexity which makes it too hard to deliver affordable, practical advice to most consumers.

There is a TPB review happening right now. One of the options on the table is for TPB to butt out of financial adviser regulation and just focus on tax agents. Frydenberg/Hume need to step in and ensure that happens without delay. The Code Monitoring body needs to be put on ice until Frydenberg's new disciplinary body is formulated. As part of the implementation of that new disciplinary body, every other agency with functions that overlap it needs to be removed from financial adviser regulation.

This character has all the authenticity of your average Big Tobacco PR guy? Using the usual generic (and meaningless) buzzwords such as “over regulation” is just not going to cut it in a world where these cowboys have been allowed to run roughshod over the laws of common decency, let alone the actual rules which were designed to protect the community. You’ll have to do a lot better than that sir!

Add new comment