The original reasoning for establishing CPA Australia Advice remains valid, but there was insufficient demand from members to make it financially viable, according to PwC Strategy’s assessment.
The comments come after CPA Australia announced last week it will exit its advice business after considering its future at a board meeting on 16 July.
In a letter detailing its findings from a post-implementation review of CPA Australia Advice, PwC Strategy said demand from members for the advice offering in the form it was established was insufficient to ensure financial viability.
“We have found no evidence to suggest that future demand for the offering in its current form will increase to a financially viable level,” PwC Strategy said, adding it recommended CPA Australia consider exiting its advice business.
It also said CPA Australia should conduct a detailed investigation of the most suitable model for providing members who provide financial product advice with support, and suggested it could consider various potential models.
“In considering whether there is a viable model for supporting these members, CPA should review and take account of the evolving legislative, regulatory, competitor and consumer environment impacting the delivery of financial product, accounting and related advice, the advisers who provide it and the potential evolution of CPA public practice member business models,” it said.
It also suggested CPA Australia should provide as much as certainty as possible to its existing authorised representatives by exploring its options as soon as possible.
“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,” the letter said.
