Updated June 09, 2017 13:18:27

Photo: The head of CPA Australia, Alex Malley, says the organisation will find a solution. (Supplied: CPA)

A stoush has erupted between the NSW Fair Trading Minister Matt Kean and the highly paid head of accounting body CPA Australia, over threats to effectively deregister the organisation.

Fair Trading Minister Matt Kean said he had received legal advice that he should not approve a new professional standards scheme for CPA Australia.

If the scheme is not approved, thousands of CPA members could be exposed to massive levels of liability.

Mr Kean said the advice suggested the financial consulting side-business that CPA had been running for the past two years, CPA Advice, created a potential conflict of interest as it competed with the organisation's own members.

The CPA Advice business only has 25 members, but has benefitted from $12.4 million in cash from CPA Australia in the past year.

Mr Kean said he had serious concerns about CPA Australia's governance.

"They potentially jeopardise our ability to approve it as a professional standards scheme in NSW," he said

But CPA boss Alex Malley has accused the Minister of interfering in due process and has demanded Mr Kean make a public apology.

CPA chief Alex Malley is under pressure to justify the accountancy body's promotional budget and how members fees are spent.

"How is it that confidential Crown advice in a process with an independent statutory authority is now being commented on by a Minister," he said.

"It clearly means that the Minister has at best been incompetent and reckless, this is his portfolio and he's commenting on a process that's still underway.

"What is extraordinary is there have been no conversations at all in any process thus far questioning our governance."

Mr Malley has recently been in the headlines for his $1.8 million pay packet.

Mr Kean has defended his actions and said Mr Malley should focus on finding a solution for members.

"I would say to CPA get your house in order, respond to the concerns raised by the professional standards council and stand up for your members," he said.

Mr Malley said whatever the outcome of this particular application is, CPA Australia would find a solution to make sure its members liability continued to be limited.

Topics: accounting, industry, business-economics-and-finance, community-and-society, australia

First posted June 09, 2017 11:32:12