CPA advisers to rebate commissions

Speaking to ifa, a CPA Australia spokesperson elaborated on the accounting body's announcement that it will seek an Australian Credit Licence in addition to its much-hyped application for an AFSL.

"The decision to apply for an Australian Credit Licence is to enable the provision of holistic advice when discussing a client's financial affairs, which will often include the review of personal debt when assessing cash flow," the spokesperson said.

"Members who are authorised to provide credit advice will be able to provide mortgage broking services. We envisage such services will be one element of the credit and overall advice offer."

Asked how mortgage broking services will fit within its pledge to provide "independent financial advice" services as defined in the Corporations Act, the spokesperson said these members will not be exempt from the requirement to refrain from taking commissions.

"All advice and services provided under the Australian Credit Licence will be on a fee-for-service basis," they said.

"If there is a commission payable when a loan is placed, this commission will be rebated to the client – in full."

Members who are authorised to provide credit advice services may have an edge over market competitors due to their also being qualified as accountants and financial planners, the spokesperson said.

"There are already professional accountants who are licensed to provide valuable advice in regards to mortgage broking and consumer credit services," the spokesperson said.

"The value of such services is the advice that they provide is underpinned by their broad finance, structuring and tax expertise."