AFA EGM instigator attempted 11th hour withdrawal

The instigator of a resolution to diminish the negotiating powers of the Association of Financial Advisers (AFA) in relation to the Life Insurance Framework (LIF), Mark Dunsford, proposed to withdraw the resolution at a discussion prior to the extraordinary general meeting (EGM) on the afternoon of Thursday, 6 October which the AFA won with a clear mandate.

Almost three quarters of all voters opposed the passing of the resolution at the AFA 2016 National Adviser Conference in Canberra.

Speaking to the media after the EGM on 6 October, the association's outgoing national president, Deborah Kent, said however, that the AFA decided to proceed with the vote to allow for a democratic process as they deemed it too late in the piece to withdraw the resolution.

"Once the meeting started the process was that the resolution was rejected by the original person who put it up but as the chair, I accepted the resolution on behalf of the association as I said [it was] in the best interest of our members," Kent said.

"It was kind of too late and there were a lot of members who had voted via proxy both against and for and we felt that the democratic process should take its place and allow the resolution to be upheld and then debated and voted on."

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Both Kent, and AFA chief executive, Brad Fox, said the results indicated a clear mandate for the AFA board to continue performing its role as a negotiator on key policy issues.

The voting numbers were as follows:

• 842 members voted;
• 222 members voted for the resolution: 219 via proxy plus three from the floor at the EGM;
• 620 members voted against the resolution. This included 485 proxy votes plus 135 from the floor at the EGM; and
• 73.6 per cent of the members voted against the resolution while 26.4 per cent voted for it.

Members were also given the opportunity to engage in rigorous discussions around the resolution as well as LIF in general at the EGM.

"I think us as an association, the thing that came out of it for us today was there is a resounding voice from the majority of our members that they support what the board is doing and the direction of the board. Allowing them to debate the Life Insurance Framework was I think a good thing because it lets people talk to it," Kent said.

"You have to acknowledge that there were people obviously who had supported Mark in his endeavours with this EGM and I think as any association we need to listen to those people and we need to listen to their concerns."

Fox said that while the transition to the LIF would be difficult for risk advisers, many of whom had small businesses, the AFA would continue to support them through this phase.

"We don't believe there's a better outcome available than what we've negotiated so we're back to the role of supporting," he said.