AFA National President, Sam Perera and FPA Chair, David Sharp, shared the stage at this year’s AFA Conference as they jointly outlined the rationale for the proposed merger of the two associations and responded to questions from members.
In an historic and rare moment for the sector, the association leaders agreed that philosophical and policy differences that have existed in the past have lessened over time and that the associations have been working ever-more closely on policy and advocacy issues in recent years.
Perera told conference delegates the ‘why now’ rationale for the merger related in part to market dynamics and what are currently declining adviser numbers, and where a merger with the FPA will represent one way to ensure the AFA can continue – in one way or another – to serve its members interests over the next 76 years, having its origins date back to 1946.
…one single united dominant voice that represents the lion’s share of advice professionals
According to Sharp, one compelling reason why the FPA Board fully supports the merger is that it will result in the creation of “…one single united dominant voice that represents the lion’s share of advice professionals in this country, so when we go to decision-makers, we have to be heard …and that is the most compelling reason why we are better together.”
Sharp added the FPA has a three-point strategy that revolves around:
- Members
- Advocacy
- Consumers
Of these three key pillars, Sharp told delegates Members is number one for a reason, namely that the FPA, like the AFA, is unashamedly a member-focussed organisation and that a unified, merged association would have that same focus on its members.
…far more unites us than divides us
He also argued that a combined association would be in a position to deliver greater scale to members, in events such as annual conferences, as well as in areas of education, continuing professional development and other services needed by adviser members, concluding with the observation that “…far more unites us than divides us.”
Designations
The leaders fielded member questions relating to issues including the future recognition of the two associations’ qualification designations, including the FPA’s CFP and AFA’s FChFP. Delegates were told the associations had agreed the CFP qualification will be the lead designation, but that the FChFP would continue to be recognised and supported.
Risk specialists
Continuing to represent the needs and interests of risk specialist advisers was clearly articulated by both leaders, who noted the associations already have a joint life insurance task force and that life insurance advice will continue to form an integral element in a future merged association.
Adviser, sector communities
Delegates also heard that bringing the two associations together would also mean bringing the best parts of each to the new combined association, including the valued communities of practice developed by the AFA.
Member fees
The intention is to see either no change or a possible reduction in member fees under a merged association.
Board construct
The relative size of the two associations was given as the reason for that it has been agreed the formation Board of the new association will comprise eight seats taken by the FPA and four by the AFA.
New name
While a new name has yet to be put to members, it was re-affirmed that the new name would NOT be AFA or FPA.
Both associations will continue to consult with their respective members ahead of a vote before the end of the year, where a majority of 75% of both member bases must approve the proposal in order to progress with the merger.
