Senator Hume to consider IPA’s extended accountants’ exemption proposal

The CEO of the Institute of Public Accountants (IPA) and general manager Vicki Stylianou sat down with the Assistant Minister for Superannuation, Financial Services and Financial Technology, Jane Hume, on Monday to discuss the IPA’s proposed “new, extended accountants’ exemption”.

Following a “very positive” meeting, the CEO said that Ms Hume will carefully consider the proposals and consult with her ministerial colleagues.

“We agreed to continue the direct communication and the minister welcomed the more than 1,750 accountants who have voiced their opinions through surveys demonstrating a ringing endorsement for the advocacy to reinstate the accountant’s rightful place to have a more holistic advice discussion with clients,” Andrew Conway said.

“Put simply, under the current laws, clients are being let down and accountants are hamstrung.”

The accountants’ exemption was phased out in 2016 as part of the FoFA reforms, but was recently put back on the table after Treasury suggested reviving it as one of seven models to improve the current regulatory environment.

Over a year ago, the IPA announced it was lobbying the government for the return of the accountants’ exemption, arguing that its removal barred many of its members from providing guidance to their clients on superannuation.

IPA’s proposal

Following consultation with members over the last 12-18 months, the IPA has argued for a new “Qualified Accountants Financial Services Licence” (QAFSL) that:

1. Leverages the “qualified accountant” definition in corporate law being a member of one of the three bodies with a practicing certificate;
2. Builds on the requirements of professional membership including mandatory professional indemnity insurance, mandatory and monitored continuing education and compliance with professional and ethical standards as well as minimum education requirements; and
3. Requires holders of QAFSL holders to undergo an education course akin to RG146 and undertake an annual ethics update but avoids ongoing licence fees.

“We think this model goes a long way to restoring balance, increasing access to competent advice and enables qualified accountants the ability to provide advice clients expect and trust them to provide,” Mr Conway said.

“We were pleased with the minister’s response and continue the strong push in the best interests of clients.”