The Institute of Public Accountants (IPA) has announced that its Board of Directors has decided to adopt its own Pronouncement 11 Financial Planning Services as an alternative to APES 230, a standard for financial advisory services issued by the Accounting Professional and Ethical Standards Board (APESB). IPA CEO Andrew Conway said “the IPA has consulted with APESB regarding APES 230 and the alignment with the Future of Financial Advice (FoFA) reforms”. He said “the APESB has been made well aware of the IPA’s Constitutional power to issue a pronouncement in place of an APESB standard where it is in the interests of IPA members to do so”.
Mr Conway said “the IPA maintains its firm view that the additional components imposed by the IPA on members effectively address the public interest”, including:
- compliance with the law (FoFA);
- compliance with IPA professional standards;
- compliance with the APES 110 Code of Ethics;
- mandatory continuing professional education;
- extensive quality assurance review process; and
- IPA complaints, investigation and disciplinary system.
Mr Conway noted that “the IPA continues its strong and committed support of the APESB”. He said the “Pronouncement seeks to provide certainty to our members while ensuring they are able to continue to provide high quality, affordable advice to their clients”.
Source: IPA media release, 14 October 2013
[LTN 198, 14/10/13]
Institute of Public Accountants urged not to go it alone in setting standards for financial advisory services
The Accounting Professional & Ethical Standards Board (APESB) has responded to the Institute of Public Accountants’ (IPA) decision to issue and adopt for its members Pronouncement 11 Financial Planning Services as an alternative to the APESB’s standard for financial advisory services, APES 230.
APESB Acting Chair Stuart Black said “it is the expectation of the APESB that members of the 3 professional accounting bodies will adopt and implement all APESB standards and that those accounting bodies will monitor and enforce their respective members’ compliance with these standards”. He added that the “APESB encouraged the IPA not to issue its alternative standard and has advised that each of the 3 professional accounting bodies is expected to support all APESB standards to maintain a strong and effective co-regulatory framework”.
Source: APESB media release, 14 October 2013
[LTN 199, 15/10/13]
CPA Australia and ICAA support APES 230 for financial advisory services
CPA Australia and the Institute of Chartered Accountants Australia have reaffirmed their support and commitment to implement the Accounting Professional & Ethical Standards Board’s standard for financial advisory services, APES 230. The announcement follows the Institute of Public Accountant’s decision to implement its own Pronouncement 11 as an alternative to APES 230 (see above). CPA Australia CEO Alex Malley said the implementation of APES 230 will lift the value of financial advice Australians receive. Institute CEO Lee White said the profession is gearing up for the start of the new framework for professional accountants who provide financial planning services from 1 July 2014. “As the independent standards setting body, it is appropriate for the APESB to set the framework for all professional accountants,” Mr White said. APES 230 is effective from 1 July 2014, with transitional provisions for some requirements commencing from 1 July 2015.
Source: CPA Australia and ICAA joint media release, 14 October 2013
[LTN 200, 16/10/13]