Speaking to Accountants Daily, CPA general manager of external affairs, Paul Drum said that while the final recommendations may look onerous for public practice accountants providing financial advice, there were still several obstacles before the recommendations become law.
“Regardless of the royal commission recommendations and what governments and oppositions say, this is no lay-down misère,” said Mr Drum.
“It is very unlikely that CPA Australia will support all of the recommendations as presented in the report.”
Apart from a looming federal election, Mr Drum also believes the new FASEA requirements may play a big role in deciding which recommendations get legislated.
One of Commissioner Kenneth Hayne’s recommendations for the financial advice space involves a new disciplinary system that will require all advisers to be registered.
“While CPA Australia is an advocate of efficient and robust regulation, policymakers and governments need to be mindful of the pre-existing regulatory complexity that exists in the financial services space – and the impact it is having on the provision of appropriate financial advisory services to consumers – before introducing additional regulation that may in fact overlap and be in conflict with what is already in place,” said Mr Drum.
“The ink is not yet dry on the FASEA proposal, and how this interacts with the Hayne report recommendations is unclear.
“This is but one example of the work ahead in considering in detail the implications of what future governments seek to put forward as appropriate reforms from the Hayne report.”
Jotham Lian is the news editor of Accountants Daily, the leading source of breaking news, analysis and insight for Australian accounting professionals.
With a focus on breaking news and exclusive analysis, Jotham keeps Accountants Daily readers up to date with company moves, tax updates and essential business and client strategy.
Before joining the team in 2017, Jotham wrote for a range of national mastheads including the Sydney Morning Herald, and Channel NewsAsia.