Merry Christmas to Peter Wilson. When it was suggested that Peter Wilson should be independent of the old board so that we can have a fresh start Peter responded with "That's your issue". Summary of the meeting here: viewtopic.php?f=23&t=594
A good summary of where we are up to by Joe Aston of the AFR, linked to from here: viewtopic.php?f=5&p=4137#p4137
If you are new to this website read the story so far: viewtopic.php?t=321#p1793
Check out some of the AFR articles, too many to list and check out some of the ABC reports: http://www.afr.com/business/accounting/ ... 215-h055ej http://www.afr.com/business/accounting/ ... 211-h02x1d http://www.abc.net.au/news/programs/the ... s,/8626662
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CPA Advice

Issues at CPA Australia needing investigation and/or review.
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certified sane
Posts: 31
Joined: Fri Mar 31, 2017 2:35 am

CPA Advice

Post by certified sane » Fri Mar 16, 2018 3:32 pm

https://www.accountantsdaily.com.au/pro ... ct-for-cpa

Another reason to keep kicking the dead dog

JWheldon
Posts: 340
Joined: Wed May 24, 2017 6:43 pm

Re: CPA Advice

Post by JWheldon » Sat Mar 31, 2018 12:09 am

Again this is interesting. Have anyone seen the 2017 financial accounts for CPA Australia Advice yet?

https://www.accountantsdaily.com.au/pro ... ct-for-cpa

CPA’s licensing business is increasingly raising serious questions about the association’s eligibility as a monitoring body under the federal government’s incoming education requirements.

The new standards, to be set by the Financial Adviser Standards and Ethics Authority (FASEA), will apply to those licensed to provide financial advice from 2024.

As it stands, to provide financial advice under the new guidelines, you have to be a member of a monitoring body.

Monitoring bodies may be professional associations, but they cannot be an Australian Financial Services (AFS) licensee, or an affiliate of a licensee. CPA Advice, a licensee, is a subsidiary of CPA Australia.

If CPA Australia is not recognised as a monitoring body, its members who provide financial advice will need to join another organisation that is approved as a code monitoring body to be compliant. At this stage, it’s unclear which organisations will be recognised, as the code of ethics is still under development.

This friction has been the subject of debate in the profession since the new laws were released in early 2017. However, as guidance from FASEA continues to roll out, licensing and compliance experts are increasingly questioning how CPA Australia will remedy this potential conflict.

CPA Australia has been aware of the issue since the legislation was first issued for consultation, and has been working on a fix since that time.

“We understand that associates of an AFS licensee cannot act as a monitoring body to enforce a code,” a spokesperson for CPA Australia told Accountants Daily.

“It is something that we have been, and will continue to be in discussion about with relevant stakeholders. In the meantime, the sector is looking forward to the release by ASIC of guidance on the framework for the monitoring bodies,” the spokesperson said.

The spokesperson also stressed CPA Australia is broadly supportive of the new measures.

“CPA Australia supports the introduction of the requirement for all relevant providers to comply with a Code of Ethics and be covered by a scheme,” the spokesperson said.

In addition, some members have voiced their angst about CPA Australia’s lack of communication on issues related to the matter, particularly in relation to its RG146 Compliance Solution being shut down in response to the incoming guidelines.

RG146 Compliance Solution, a training program designed to meet the competency requirements of ASIC’s financial advice guidelines and standards, will be retired by December this year.

CPA Australia confirmed the phaseout in its candidate handbook late last year. Accountants Daily understands several training providers in the market have had to reconsider their offerings in response to the new guidelines.

However, CPA Australia is satisfied members have been appropriately informed of changes to its training, given the new standards the association requires to adjust its training offerings are not yet finalised.

“Along with other providers, we’re working on transitioning our offer to meet the new education standards which will come into effect from 1 January 2019. Those standards themselves are a work in progress as FASEA works to determine just what the new requirements will look like,” the spokesperson said.

Troubled history

CPA Advice was central to the problems the association had with securing a professional standards scheme last year, which provides liability coverage for members in public practice. The Professional Standards Council (PSC) authorises the schemes and was, at the time, concerned by a potential conflict of interest the licensing arm posed.

CPA Advice has also struggled from its launch in 2015 to attract members and meet its business projections.

If the current pace continues, there is little chance CPA Advice will reach its projected 1,360 authorised representatives by 2019. As of June last year, it had onboarded 27 representatives, well short of its targeted 250 by year end.

CPA Advice was granted an Australian Financial Services Licence (AFSL) and Australian Credit Licence (ACL) only about three months out from the expiration of the accountants’ exemption, which was a key motivator for accountants to get authorised under an AFSL.

CPA Advice also reported a combined trading loss of $7.4 million in November 2017 since its inception.

As per the recommendations of former auditor-general Ian McPhee’s report into the corporate governance and structure of the association last year, CPA Advice is currently undergoing a review.

katarina.taurian@momentummedia.com.au

JWheldon
Posts: 340
Joined: Wed May 24, 2017 6:43 pm

Re: CPA Advice

Post by JWheldon » Thu May 24, 2018 10:01 pm

For members interest,

It appears that CPA Australia Advice now only has 37 members signed up and five who were signed up but have now ceased being associated with CPA Australia Advice.

19 members signed up in 2016 and still joined

17 members signed up in 2017 and still joined

Only signed up one members for 2018

Any way you look at it. CPA Australia is paying PWC to simply confirm what the rest of the membership already know. CPA Australia will not make a profit and will not return a profit by the target date set by the previous board, nor return the $20 million already injected into this business.

So, as one member has already stated, why continue to pay PWC to do something we already know?


https://data.gov.au/dataset/asic-financ ... 127dbbc869

AFSL no 482657

https://www.accountantsdaily.com.au/pro ... lia-advice
article published 6 April 2018

Big four firm PwC has been appointed to review CPA Australia’s struggling licensing arm, which has lost millions to date and continues to pose regulatory conflicts.

PwC will review the business operations of CPA Australia Advice, including its rationale, conduct, business case and competitiveness for the immediate and long term.

This is in line with recommendations from former auditor-general Ian McPhee’s report into the association and its subsidiaries last year.

“Until the review is complete and the report is received and considered, the directors will continue to operate CPA Australia Advice in accordance with the existing operating structure,” CPA Australia said in a statement to members this afternoon.

CPA Advice has struggled from its launch in 2015 to attract members and meet its business projections, and reported a combined trading loss of $7.4 million in November 2017 since its inception.

It’s also an ongoing regulatory impediment, being central to the problems the association had with securing a professional standards scheme last year, which provides liability coverage for members in public practice. The Professional Standards Council authorises the schemes and was, at the time, concerned by a potential conflict of interest the licensing arm posed.

Currently, CPA Australia Advice is raising questions about the association’s eligibility as a monitoring body under incoming education requirements for accountants providing financial advice. Members who provide advice will need to join another approved code monitoring body to be compliant if CPA Australia does not have its recognition status approved.

katarina.taurian@momentummedia.com.au

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Stomper
Posts: 206
Joined: Tue May 02, 2017 9:55 am
Location: Sydney, NSW, Australia

Re: CPA Advice

Post by Stomper » Fri May 25, 2018 12:10 pm

Have a look at my thread on the CPA Australia Advice Pty Ltd financials....


http://www.cpamembers.org/viewtopic.php?f=8&t=672

JWheldon
Posts: 340
Joined: Wed May 24, 2017 6:43 pm

Re: CPA Advice

Post by JWheldon » Tue May 29, 2018 10:11 pm

Thanks Stomper. CPA Australia board, don't want members to really have a look at CPA Australia Advise. They don't want to disclose the financial accounts to the membership.

JWheldon
Posts: 340
Joined: Wed May 24, 2017 6:43 pm

Re: CPA Advice

Post by JWheldon » Sat Jul 14, 2018 10:43 pm

Looks like the wheels are falling off CPA Australia Advice.

The number of registered financial advisers under its licence, are continuing to decrease,not increase. The writing is clearly on the wall for this organisation. I wonder how many thousands of dollars it will cost the members to pay PWC to advise that CPA Australia Advice should be closed????? I know a lot of graduate accountants and even public practitioners that would probably charge a substantial cheaper rate to make a recommendation about CPA Australia Advice. Would have though that given one of the board members was a professional liquidator and reconstruction adviser, and others that are professional auditors, that they would have the professional experience to review the situation and make a recommendation. Maybe they don't get paid enough in director fees to make these type of decisions?????????

Have the advisers linked to CPA Australia Advice, already been told that CPA Australia will cease to fund to this organisation or have other sources already told advisers that the PWC review will result in the closure of CPA Australia Advice????? Has PWC already concluded its review, and CPA Australia is sitting on the results??????? Wasn't PWC appointed to the review CPA Australia Advice in April 2018???? The number of advisers registered under CPA Australia Advice AFS Licence 482657, shows a reduction in member numbers. If this business had to stand on its own, then it would close tomorrow. The management and board of CPA Australia Advice, were overpaid, and operating costs were to high and substantially insufficient funds generated from the membership. If the membership numbers don't substantially increase then the board of CPA Australia have no option, but to shut it down, regardless of what PWC advices. What a waste of membership funds, to pay PWC thousands of dollars to advise a board, who should have the accounting skills to already make the decision. So what is the point of having a board of so called over qualified, experts, when they need to waste thousands of dollars on getting external advisers to do something, that several of the board members, do as part of their normal day to day activities????????

The result does not look good for those financial advisers that are still associated with CPA Australia Advice. What do others thinks

https://data.gov.au/dataset/asic-financ ... 127dbbc869

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Stomper
Posts: 206
Joined: Tue May 02, 2017 9:55 am
Location: Sydney, NSW, Australia

Re: CPA Advice

Post by Stomper » Mon Jul 16, 2018 1:16 pm

"What do others thinks"
It should have been closed 2 years ago....

1. Not in accordance with Objects
2. A Leyland P76 not a BMW
3. Economically f***ed
4. At odds with Certification
5. Members have cheaper better alternatives

Where do I send my invoice?

cpasteve
Posts: 24
Joined: Wed May 03, 2017 9:24 am

Re: CPA Advice

Post by cpasteve » Fri Aug 17, 2018 3:43 pm

Just a heads up and call to arms. Andrew Conway CEO of the IPA and Ron Lesh from BGL are having a crack at having the accountants exemption reinstated. It's a long shot, but good on them for having a crack. It's what our professional bodies should have been doing three years ago rather than setting up CPA Advice. Anyway, they're asking for comments, thoughts, support. If you have anything to say about it email IPAGroupFeedback@publicaccountants.org.au

And spread the word amongst your colleagues and discussion groups. If we get a bit of support around this who knows what could happen...

The Future of Financial Advice legislation introduced on 1 July 2016 saw the removal of the accountant’s exemption, thus preventing many members, not licensed under the new regime, from providing any financial advice relating to self-managed superannuation.

Whilst the IPA fought to maintain this exemption, the government rejected our efforts.

We believe it is in the best interests of our members and the public that we take up the gauntlet once more.

From a public interest perspective, we believe this is about ensuring that people have access to affordable financial guidance, particularly to help them secure their future financial and retirement planning. As such, we believe our members are in the best position to provide financial guidance of this nature to their clients.

In the recent roadshow around our Divisions, many members have raised this issue with me personally. I will be conducting face to face meetings with our Divisional Advisory Committees over the next week where I will be seeking further guidance directly from members to inform our approach.

We have issued a public statement to signal our intention to advocate for the return of the accountant’s exemption. The statement can be viewed here.

I welcome any input or feedback via email to IPAGroupFeedback@publicaccountants.org.au.

Andrew Conway FIPA FFA
IPA Group CEO

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