Chartered Accountants Australia and New Zealand (CAANZ) has revealed it has experienced similar feedback to other accounting bodies with significant requests from members wanting a return to the accountants’ exemption with regard to servicing SMSF clients that was in operation before the implementation of the Future of Financial Advice (FOFA) reforms.
Speaking at the CAANZ National SMSF Conference 2018 in Melbourne, the accounting body’s head of tax, Michael Croker, said: “Some members have contacted us and said ‘you know the accountants’ exemption before the FOFA reforms, can we go back to that’. We have taken soundings at ministerial level, we have taken soundings from other committees, we have spoken to CPA Australia [and] we don’t see that coming back.”
Accountants IQ director Bronwyn Speed said she had communicated to the Australian Securities and Investments Commission that sentiment in the accounting profession is that regulation had gone too far, making it extremely difficult for practitioners, but the corporate watchdog showed no indication of changing its stance.
Croker concurred this was an accurate reflection of CAANZ sentiment.
“Many of our members we know feel that the regulatory dial has moved too far to this side where there is so much red tape that exists now and there are many members who feel there is too much red tape coming,” he said.
“You need to get on with your business, you need to get on with your client service offerings in a way which ensures you and your own business models make money as well.
“We’re very conscious an over-regulated profession is going to struggle in terms of the time it might take you to attend re-education courses, or new education courses, the time it takes your staff to go to those similar training courses, and the time it takes to get the necessary licences and accreditations.”
He admitted CAANZ is fearful of a significant amount of accountants exiting the advice space, which he felt would make no sense for consumers in the wake of banking royal commission findings regarding the questionable morality and ethics of financial planners.
“Here we have a ready-made workforce in the suburbs and the cities and towns, which has long honoured its ethical obligations by and large, which has long had the trust of the community in terms of perception,” he said.
“You are a fantastic resource which this country has probably taken a little bit for granted in terms of all these sorts of regulatory models which are currently coming up.”
