Australia’s two largest accounting bodies have given their seal of approval to the Accounting Professional and Ethical Standards Board’s contentious APES 230 Standard. This endorsement is an effective ‘sign-off’ for the ethical rules under which financial advice will be delivered to consumers via accounting firms, commencing from 1 July 2014.
Some of the perceived ‘sting’ in the tail of the APES 230 Standards was removed earlier this year when the APES Board backed down on its original intention to include within its Standards a ban on the payment of life insurance commissions (see: APES 230 – Risk Commissions Back Down).
… the implementation of APES 230 will lift the value of financial advice Australians receive
However, the APES 230 Standards that relate to professional fees and third party payments (which will commence from 1 July 2015) remain focussed on removing any conflict of interest, real or perceived, that relates to adviser remuneration.
Commenting on its endorsement of the APES 230 Standard, CPA Australia Chief Executive, Alex Malley, said the implementation of APES 230 will lift the value of financial advice Australians receive: “The APESB sets the standards and ethics for Australian professional accounting bodies which aim to reflect the high expectations of consumers and the role of the profession to act in the public interest.”
The endorsement of APES 230 by CPA Australia and the Institute of Chartered Accountants follows the recent announcement by the Institute of Public Accountants that it would implement its own ‘Pronouncement 11’ ethical standard for its members to observe, as an alternative to APES 230.
Click here to access a copy of the APES 230 Standard, released in April 2013, noting section 9.2, which sets out the conditions under which remuneration via life insurance commissions will remain open.
An accountant is not a financial planner and should not have the ability to sell life insurance at all, OMG what have we done.
I can tell you I know a CPA that said to her client you are to young to worry about paying super (at 32) forget it. She paid 55k in tax that year.
Another accountant caused Hectorville Football club to withdraw from a junior competition due to her deliberate fraud and the association did not care it cost 21 children the opportunity to play in the GF well done Claire Chadwick Harrison.
Last a senior CPA asked me if insurance under super was tax deductible? what is that.
You cant be everything to all you cant be an expert of all trades your members have no idea about insurance.
Correct Matthew, life is so complex, specialisation has become a necessity to ensure all the t’s are crossed, or one may be left penny less when it all comes undone due to because one group or another feels their not being given a piece of the pie.
Its hard enough having a life outside of work commitments, keeping up to date with the risk area let alone the superannuation, the tax provisions etc. Stick to what you know and are passionate about – refer to others who specialise in areas you are not proficient in.
It all works well when the client’s best interests at the forefront.
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