Download APES 230: Financial Planning Services Fact Sheet

APES 230:
FINANCIAL PLANNING SERVICES FACT SHEET
Objective
APES 230 Financial Planning Services (the Standard) sets out mandatory requirements and guidance
for members engaged in the provision of quality and ethical financial planning services. A financial
planning service includes advice provided to a client in respect of a client’s personal financial affairs
specifically related to wealth management, retirement planning, estate planning, risk management and
related advice.
Scope and application
APES 230 took effect on 1 July 2014, except for its provisions in relation to Professional Fees and Third Party
Payments which are effective from 1 July 2015. The Standard requires members in Australia to adhere to its
mandatory requirements. For members outside of Australia, the mandatory requirements of APES 230 must be
followed to the extent to which they do not contravene specific requirements of local laws and/or regulations.
Fundamental responsibilities of members
APES 230 requires members to comply with the requirements established in APES 110: Code of Ethics for
Professional Accountants and to act in the best interests of their clients.
Professional independence
APES 230 stipulates that when a member is engaged to provide a financial planning service a member must
comply with Professional Independence as defined in this Standard and where applicable must comply with the
independence requirements contained in laws and regulations, such as the Corporations Act 2011.
Terms of the financial planning service
APES 230 requires a member in public practice to document and communicate to the client the terms of
engagement to provide the financial planning service in accordance with APES 305: Terms of Engagement and
this Standard.
APES 230 requires a member to disclose to a client or prospective client in a written form a number of specified
terms of engagement and obtain the client’s written agreement to these terms.
Professional fees and third party payments
APES 230 requires members to charge fees on a fee for service basis or if a member charges fees other than on a
fee for service basis it imposes a number of requirements in relation to consent and disclosure.
Soft dollar benefits
APES 230 prohibits the receipt of soft dollar benefits in relation to a Financial Planning Service unless they are
insignificant and their receipt complies with the requirements set out in the Standard.
Refer to the Standard for information concerning:
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definitions
integrity
objectivity and conflicts of interest
best interests of the client
confidentiality
professional appointments
marketing
the basis of preparing and reporting financial planning advice
client’s information, monies and other property
professional fees
third party payments
soft dollar benefits
documentation and quality control
transitional provisions.
Disclaimer
The above material is only general in nature and not intended to be specific to the reader’s circumstances. The material does not relieve you of your
obligation, as a member of CPA Australia, to ensure that you comply with professional standards. To keep up-to-date members should visit the APESB
website at apesb.org.au.
Copyright © CPA Australia Ltd (“CPA Australia”) (ABN 64 008 392 452), 2015. All rights reserved.
CPA Australia and the author have used reasonable care and skill in compiling the content of these materials. However, CPA Australia makes no
warranty as to the accuracy or completeness of any information contained therein nor does CPA Australia accept responsibility for any acts or omissions
in reliance upon these materials. These materials are intended to be a guide only and no part is intended to be advice, whether legal or professional. All
persons are advised to seek professional advice to keep abreast of any legal or other reforms and developments. To the extent permitted by applicable
law, CPA Australia, its employees, agents and consultants exclude all liability for any loss or damage claims and expenses including but not limited to
legal costs, indirect special or consequential loss or damage (including but not limited to, negligence) arising out of the information in the materials. Where
any law prohibits the exclusion of such liability, CPA Australia limits its liability to the resupply of the information.
Issued May 2015