Alex Malley’s mess dogs CPA

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What a mess the Naked CEO made:

CPA Australia was warned two years ago that its new financial advice business would create a legal conflict of interest, leading the government’s regulator of professional standards to complain it still lacks “any clarity” over the basic governance of the nation’s biggest accounting body.

CPA Australia Advice, which was launched with much fanfare by former CPA CEO Alex Malley, alongside ASIC chairman Greg Medcraft, in 2015, puts it in conflict with CPA’s role as regulator of accountants, said Deen Sanders, the head of government regulator the Professional Standards Councils.

The accounting body’s repeated failure to resolve the issue in the past two years means that all its members will now lose their legal shield from multimillion-dollar lawsuits from October.

Dr Sanders also revealed the PSC will also have to wait for the outcome of CPA’s internal inquiry before it allows the accounting body to apply for a new professional standards scheme, with any new application likely to take up to half a year to process.

…”The removal of Alex Malley doesn’t change anything, the removal of CPA Advice wouldn’t change anything, and the governance review has to be considered,” Dr Sanders said.

How can the review even clear anything up given it’s conducted by card-carrying Malley cultists?

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.