The Financial Planning Association (FPA) intends to transition from an industry body to a professional association, as part of a new strategic direction announced at the 2010 FPA National Conference.
At the heart of the strategy, says FPA CEO Mark Rantall, is the desire to “transform the association and position FPA members as trusted professionals.”
Speaking at the opening of the Conference, Mr Rantall said that since his appointment as CEO, he had asked numerous FPA members whether they felt they were currently perceived by the wider community as a professional. “The answer,” said Mr Rantall, “was overwhelmingly: no.”
“We must help you restore your pride in being a financial planner. The only way that this will happen is if we complete our transition from an industry association, to a professional association,” he said.
The proposed transition is set to take three years, where the primary change will be to membership, with the new framework focused on individuals rather than practices or licensees. The FPA has proposed that from 2013 only those planners who hold a CFP or AFP certification will be admitted to the association as voting members.
In addition, the FPA will remove the Principal Member category, replacing it with a Professional Partnership. The Professional Partners will not be able to vote, but will be asked to sign a pledge to uphold the associations professional and ethical values.
“Our determination is to make the FPA a true professional association in which only individual financial planning professionals have the right to vote,” said Mr Rantall, who added:
“If members endorse the changes, financial planning businesses will no longer be voting members of the FPA, though professional practices that meet set levels of FPA membership and CFP certification will be able to license the use of the FPA brand.”
“In addition, recognising their contribution to professionalism in financial planning, licensees may become ‘FPA Professional Partners’ providing at least 25% of their practitioners are FPA members,” said Mr Rantall.
The announcement was streamed live over the web for members unable to attend the conference. Full details of the proposed changes are set out in a consultation paper, which has been released to both FPA members and the general public.
The proposal will be put to a vote in April 2011 and will require 75% agreement from FPA members if it is to go ahead.
Speaking to the media following the announcement, Mr Rantall said: “I’m very confident that the changes will go ahead, based on the current member feedback. But we don’t underestimate the importance of getting that vote up. We will work with principal members over the coming months to talk through the changes and make sure they’re feeling comfortable with the proposal.”
