CPA Australia has announced the launch of a wholly-owned subsidiary company, CPA Australia Advice Pty Ltd, to enter the financial advice market.
CPA Australia CEO Alex Malley, who will also be CPA Australia Advice CEO, said: "Too many everyday Australians have suffered as a result of poor financial advice driven by conflicts of interest. As an organisation committed to the public interest, the CPA Australia Board has made the unanimous decision to take action and offer a solution."
CPA Australia Advice will not work on commissions, or hidden incentives, or asset based fees, Malley continued, just on "pure and transparent fee-for-service".
"Our focus will be on what is right for the person seeking the advice – not what is financially beneficial for the advisor," Malley said.
CPA Australia is going into this project with its eyes wide open, Malley continued. "We know that the big financial institutions, some of the biggest companies in Australia, dominate this sector but we believe Australian consumers seeking financial advice deserve a fully transparent and independent alternative."
The new firm will shortly apply for an Australian Financial Services Licence and an Australian Credit Licence. It is expected to be operational by next year when the professional body will celebrate its 130th anniversary.