AIOFP set to keep its name
Peter Johnston
The Association of Independently Owned Financial Planners (AIOFP) appears to have been allowed to retain its name by the Australian Securities and Investments Commission (ASIC).
In June ASIC challenged the AIOFP right to use the name in communications with clients of any of its 140 member practices who did not comply with section 923A of the Corporations Act.
Section 923A restricts the use of the terms ‘independent’, ‘unbiased’ or ‘impartial’ by professionals who give financial advice to those who do not receive commissions as remuneration.
However, AIOFP executive director Peter Johnston told Money Management that the “AIOFP board is pleased with the attitude of the regulator with regard to our name”.
“ASIC has taken a pragmatic view regarding the AIOFP name for non complying [section 923A] members, due to the current review of the financial services market by the Minister.
“However, those (members) wishing to use the term ‘independent’ to describe their advice characteristics … are advised to seek their own legal advice.”
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