The Association of Financial Advisers (AFA) has announced it has received the minimum number of member forms required to call an Extraordinary General Meeting and will put to members a resolution regarding opposition to the proposed Life Insurance Framework legislation.
The Corporations Act requires the AFA to call an EGM if its receives a request to do so from 5% of its eligible voting members with this announcement following an earlier attempt to call a meeting which was unsuccessful due to the inclusion of a number of invalid meeting request forms.
The AFA stated the resolution that will go to the meeting “seeks to change the AFA Constitution in a manner that reduces the policymaking powers of the AFA Board. It is a special resolution under the Corporations Act and requires a 75% majority support in order to be successful.”
The date for the meeting was not announced with the AFA stating was required to advise members within 21 days of the date of the meeting which must be held within two months, that is, by 30 October 2016.
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Hopefully it will be in a place that is easily accessible for members that have to travel long distances ? Just a quick query if someone can advise Is it 75% of the members that attend the EGM or the total membership of the AFA. Its not very clear reading this ! I assume those that are “keen” enough to show up ?
We have to ask the AFA Board why the LICG made far stronger submissions to Treasury and the Senate review committees about the poorly thought through LIF than the AFA Board did; and indeed the LICG were able to persuade more politicians to reconsider the LIF, whereas the AFA Board only supported the FSC.
The LICG was a driving force in stopping the LIF coming into affect on 1 July this year, once again where was the AFA support??
The AFA cannot tell us one benefit of the LIF, so again why are they supporting this poor Legislation, no wonder the members want to be heard on this issue,
Margaret from what i can gather the stance is a very simple yet flawed one. By being seen as agreeing with the likes of FSC and others the AFA (and FPA) are seen as good industry citizens and are seen to be “credible” and as they toe the line they may be given a voice on future matters…..good luck.
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