CPA chief executive Alex Malley says the new company, CPA Australia Advice, will be consistent with Section 923A of the Corporations Act 2001, which allows the use of terms like ‘independent’, ‘impartial’ and ‘unbiased’.
“No commissions, no hidden incentives, no asset based fees – just pure and transparent fee for- service,” he said.
“The company we are announcing today will set a new benchmark for professional and ethical conduct in making independent financial advice available to all Australian consumers.”
“Our new company will also be consistent with APES 230, the accounting profession’s standard for members engaged in the provision of quality and ethical financial planning services.”
The new company will shortly begin securing an Australian Financial Services Licence (AFSL) and an Australian Credit Licence (ACL) to operate as a financial services business.
CPA intends to have the new company operational in 2016.
“We go into this with our eyes wide open. We know that the big financial institutions, some of the biggest companies in Australia, dominate this sector but we believe Australian consumers seeking financial advice deserve a fully transparent and independent alternative," Mr Malley said.
“We have decided on a wholly-owned subsidiary for one simple reason: consistency of culture. That culture is about independence, transparency, integrity, compliance and continuous learning.
“We see it as critical that our new company has the same culture and professional standards that are the cornerstones of CPA Australia, which includes a fundamental objective to act in the public interest.
“There’s no doubt that quality financial advice has the potential to make a real difference to a person’s wellbeing and quality of life, particularly in retirement. It’s equally true that the community’s trust in financial advice has been undermined in recent years.
“With our new company, CPA Australia Advice, we are making a watershed commitment to rebuilding the community’s trust and confidence in seeking the highest quality financial advice.” Mr Malley said.