The Financial Planning Association (FPA) and the Association of Financial Advisers (AFA) are conducting initial discussions on the possibility of merging the two associations.
This move follows a proposal made by Chairman of Matrix Planning Solutions, Peter Franzen, and the Matrix Board, for a united adviser body .
… the greater the numbers, the greater the influence
AFA CEO, Richard Klipin, said the AFA is happy to conduct discussions with the FPA on the possibility of a merger between the two associations, saying there is logic around strength in numbers: “Influencing the political and regulatory agenda is a numbers game and the greater the numbers, the greater the influence,” said Mr Klipin.
A single, united voice that represents the common interests of all financial advisers is one that would resonate in Canberra, where politicians have previously indicated that adviser bodies making representations to the Government on key issues can sometimes deliver quite different or inconsistent messages.
The ongoing debate about the nature of adviser remuneration is one key area where the AFA and FPA currently differ. The AFA advocates freedom of choice with clarity of disclosure, while the FPA is following the path of transitioning to fee for service remuneration for all its members by mid 2012.
There are also philosophical differences between the two organisations, where the FPA is structured as a professional association, while the AFA sees itself as a representative organisation first. AFA President, Dr Jim Taggart, commented, “Our message could not be simpler. We exist solely to represent and support advisers in looking after their clients.”
“While the AFA Board will meet shortly to discuss Mr Franzen’s letter, the issues he raises are matters not only for the Board, but for our members,” said Dr Taggart.
Like the AFA, the FPA Board has also yet to meet to discuss the prospect of a merger between the two associations, but FPA Chair, Julie Berry, told riskinfo the Board will meet this week.
While welcoming the opportunity to discuss a merger proposal, Ms Berry added that discussions were at a very preliminary stage and that the FPA, like the AFA, would not be moving away from any of its positions on key issues such as remuneration, professional standards and adviser education.
News of this development follows the announcement earlier this week that the AFA had joined with a number of key dealer groups to set up a new body to represent advisers in politics and in the media (see: New Licensee Lobby Group).
With discussions of a possible merger between the FPA and AFA in their very early stages, riskinfo will provide updates as they occur.
