CPA Australia has announced it is exiting the business of CPA Australia Advice after a post-implementation review by PwC Strategy found the business was no longer financially viable.
At the CPA Australia board meeting held on 16 July, the board considered the post-implementation review of CPA Australia Advice conducted by PwC Strategy.
“PwC Strategy found no evidence to suggest that future demand for the offering in its current form will increase to a financially viable level,” CPA Australia said.
“In light of these findings, the board of CPA Australia has decided to exit the business of CPA Australia Advice, although we note that the role of accountants in providing high-quality independent fee-for-service advice remains important to Australians.”
CPA Australia Advice has provided notice of the decision to all of its existing authorised representatives and staff.
“CPA Australia Advice will work with all authorised representatives to transition from the business before the end of the calendar year,” it said.
The review recommended CPA Australia consider alternative models for supporting members who wish to provide financial advice.
In response, CPA Australia said it will have to take various factors into account before deciding how it can support members.
“Taking into account the uncertainty created by the potential impacts of the Financial Adviser Standards and Ethics Authority, increased regulation and costs, as well as potential outcomes from the financial services royal commission, the board will prudently consider how CPA Australia can be best equipped to support members in the provision of financial advice,” it said.
