Business News, Financial Planning

CPA Australia scraps advice business

CPA Australia announced last week 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.

The review found demand from members for the advice offering by CPA Australia was “insufficient to ensure financial viability”.

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 also recommended CPA Australia should begin considering options as soon as possible to ensure certainty to existing authorised representatives of its advice business.

“This includes developing a plan for supporting these authorised representatives should CPA decide to exit CPA Australia Advice, whether or not an alternative model for supporting these members is established by CPA,” PwC Strategy said.

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,” the professional body said.

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