IFAAA WELCOMES CPA AUSTRALIA TO THE FRATERNITY OF INDEPENDENT FINANCIAL ADVISERS
IFAAA Media Release
IFAAA welcomes CPA Australia to the fraternity of Independent Financial Advisers
The Independent Financial Advisers Association of Australia (IFAAA) has today applauded CPA Australia’s new initiative, CPA Australia Advice. The IFAAA believes that CPA’s intention to license only independent financial advisers will add momentum to the professionalization of the Financial Planning industry. This in turn will foster trust from the advice-seeking public.
“Genuine independence is a very valuable asset for a financial services practice because it’s the hallmark of professionalism,” says IFAAA President, Daniel Brammall. “This quite rightly inspires trust. But with independence comes responsibility,” he says.
CPA’s announcement comes at a time when more financial planners are using the term ‘independent’ to promote their services. However although there are 23,000 ASIC-registered financial advisers in Australia today, very few of them are independent under the Law.
“Using the term ‘independent’ to describe your services when you don’t meet the definition is illegal under Corps Act,” Mr Brammall says. “Trying to get mileage out of the word ‘independent’ without actually practising it is potentially misleading we believe.”
When IFAAA was first launched in 2010 the Association attracted criticism from some sectors of the industry who labelled its members ‘purists’, saying its Gold Standard of Independence was not commercially viable. Five years on and the Association’s Gold Standard is still regarded as controversial by industry however there has never been criticism from the public nor the regulator.
“The Gold Standard of Independence is widely recognised as a symbol of trust by the advice-seeking public. There is no doubt that CPA’s move will help to build trust in financial advisers as a profession. We invite members of the CPA to join the community of financial services professionals who practice the Gold Standard of Independence.”
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