AFA board rejects EGM call
The board of the Association of Financial Advisers (AFA) has publicly rejected a call for an extraordinary general meeting of the organisation to pass a special resolution being pursued by the so-called Life Insurance Customer Group (LICG).
AFA president, Deborah Kent, warned that the resolution risked stifling the voice of the AFA in policy issues in circumstances where there was little scope for reversing a Life Insurance Framework (LIF) that was supported by both the Government and the Opposition.
"The proposed change would mean the AFA Board would not be able to form any policy position, or negotiate any policy position with Government, other associations or consumer interest groups, without calling a General Meeting and conducting a member vote," Kent said.
"This is a critical time in the profession's development. AFA Members need representation at the decision maker's tables. This change to the constitution would reduce and possibly remove the AFA's relevance as a voice."
She said the call for the proposed constitutional change appeared to have been motivated by the adviser's perception that the AFA did not adequately consult members on the LIF — something which was wrong and misguided.
Kent outlined the consultative processes which had been followed by the AFA in terms of the LIF, adding that the proposed constitutional change would not reverse the LIF, which has the support of both the Government and the Opposition.
Recommended for you
The strategic partnership with Oaktree Capital and AZ NGA is likely to pave the way for overseas players looking to enter the Australian financial advice market, according to experts.
ASIC has cancelled a Sydney AFSL for failing to pay a $64,000 AFCA determination related to inappropriate advice, which then had to be paid by the CSLR.
Increasing revenue per client is a strategic priority for over half of financial advice businesses, a new report has found, with documented processes being a key way to achieving this.
The education provider has encouraged all financial advisers to avoid a “last-minute scramble” in meeting education requirements prior to the 31 December 2025 deadline.
