Some professional accountants who provide financial planning advice have had to pass on regulatory costs to clients and a framework is needed that encourages advisers to provide more affordable advice, according to CPA Australia.
CPA Australia said it welcomed the Australian Securities and Investments Commission (ASIC) affordable advice consultation and would make a submission.
It noted that accountants that provided financial planning advice had to commit “significant additional resources to meeting their compliance obligation, the cost of which may be passed onto their clients”.
CPA Australia’s general manager external affairs, policy, and advocacy, Dr Jane Rennie, said: “Professional advisers have faced increasing regulation and compliance requirements in recent years. This has increased the cost and time burden of providing advice and driven many advisers from the sector.
“We need a regulatory framework that encourages professional advisers to provide more affordable, independent, high-quality advice – not less.”
Rennie said the lack of affordability and accessibility was a barrier to receiving personal advice and was forcing Australians to “go it alone” when it came to managing their finances.