MFAA chief executive Siobhan Hayden says brokers should not be afraid of CPA Australia’s recent decision to apply for an Australian Credit Licence (ACL).
The Adviser reported earlier this month that the accounting association confirmed its members have the option of moving into the mortgage broking space as it seeks to apply for an ACL, and will pay them on a fee-for-service basis.
Ms Hayden said the only reason CPA Australia is applying for an ACL is to service its existing customers and meet new legislative requirements.
“CPA are applying for an ACL and an AFSL [Australian Financial Services Licence] because in accounting purposes, the legislation changes at the end of this financial year, precluding them from doing anything related to advice, so they need to have both of those credentials,” she told The Adviser.
“People in the industry are concerned that they’re becoming brokers, but that’s actually not the case. CPA is not proposing in any mainstream format to go out and write a home loan for mum and dad.”
Ms Hayden said CPA’s accountants engaging in credit activities is really no different to brokers who have a RG146 qualification and provide general financial advice or risk advice.
“It’s a two-hat process where there will be a smaller focus on one industry, whether it be broking, financial planning or real estate,” she said.
“I think it’s a great move by CPA for the fact that it increases the understanding of each industry’s requirements.”
Mr Hayden said there may be some CPA accountants who use their ACL accreditation to do more than just providing general advice and SMSF structures.
“However, given that CPA have said they will be using the fee-for-service model, I don’t think it will work for those accountants looking to provide home loans, as customers can get a broker to do that for free,” she said.
[Related: Industry figures respond to CPA move]