AFA reinforces support for small licensees
The Association of Financial Advisers (AFA) has reinforced its support for small licensees and practices by launching the Small Licensee and Practice Principal conference within the upcoming AFA National Conference.
AFA chief Richard Klipin said the association hoped to give support to small licensees, as well as representation at government and policy level.
He added the reason why this sector needed more support was that it was hit hard by the events of the global financial crisis and would be tremendously impacted if the proposed Future of Financial Advice (FoFA) reforms go ahead.
“The FoFA reforms are obviously going to change the market economics and people with the bigger and deeper pockets are in a far stronger position to ride out the storm and to position themselves well,” Klipin said.
“There is a danger that the small licensees will be squeezed — perhaps not squeezed out, but certainly squeezed — as volume based payments, volume rebate and commission arrangements come under the microscope,” he added.
Klipin also said four small practice owners sit on the current AFA board and added “the incoming board will also have a healthy representation of small licensees”.
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