Date posted: 1/03/2019 3 min read

Impacts of the Hayne Royal Commission Final Report

While accountants were spared the ire of the Royal Commission’s Final Report, many recommendations will impact those in public practice.

In Brief

  • Accountants barely rate a mention in the Hayne Royal Commission’s Final Report.
  • However, accountants who provide financial planning services, work in APRA-regulated entities or provide specialist service may be affected.
  • The recommendations will also impact land valuations, especially for agricultural land.

Since our last newsletter, the findings of the Hayne Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry have been handed down.

Accountants were barely mentioned in the Final Report. Nonetheless, many of the recommendations will impact Chartered Accountants in public practice. Those most affected will be Chartered Accountants who provide financial planning services, and those who work in APRA-regulated entities. Large and mid-tier firms providing specialist service offerings to clients in the financial services industry are also likely to be heavily engaged in implementing Commissioner Hayne’s recommendations.

Accountants were barely mentioned in the Final Report. Nonetheless, many of the recommendations will impact Chartered Accountants in public practice.

In the report, Commissioner Hayne calls for a shift to greater professionalism in the industry, underpinned by enforceable ethical standards – something that should be heartening for Chartered Accountants in all fields.

Another recommendation (Valuing land – Recommendation 1.12) of the Hayne Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry will have an impact on Chartered Accountants specialising in valuation. In valuing agricultural and other land, APRA has been tasked to amend Prudential Standard APS 220 to:

  • require that internal appraisals of the value of land taken or to be taken as security should be independent of loan origination, loan processing and loan decision processes, and
  • recognise, to the extent possible, the likelihood of external events affecting realisable value of agricultural land, and the time that may be taken to realise the land at a reasonable price.

As such, Chartered Accountants may need to boost their network of trusted, and members working as valuers will need to take these changes into account.

Readers can find a summary of the Commissioner’s recommendations, together with the Government’s response here.

Commissioner Hayne's recommendations

A summary of the Commissioner’s recommendations, together with the Government’s response

Read here