Dealer groups call for unified industry voice

Dealer groups are continuing to support calls for a unified industry voice despite concerns about how a potential merger between the Financial Planning Association (FPA) and the Association of Financial Advisers (AFA) would work.

Lonsdale chief executive Mario Modica welcomed the suggestion but said there were fundamental policy

differences that had to be aligned before a merger could take place.

“I think it would make sense to try and have a united front as much as possible, [but] unless you can get some sort of consistency or consensus on policy that’s not going to happen,” he said.

“It makes sense to try and channel everything through one area, you can harness your resources a lot better and get a united front — you can lobby far better as one.”

Fiducian managing director Indy Singh would also welcome a merged industry body — the sooner the better.

“It would be a good idea if they got together from an industry point of view and formed a single front,” Singh said.

“They should have a group that would meet to discuss the alternatives and form a joint committee and then put their points forward and try to come to a conclusion that would be to the benefit of everyone. The last thing we want in the industry is two factions arguing over something that doesn’t really matter,” he said.

However, the director of AFA member group Synchron, Paul Riegelhuth, said there was some resistance to a merger with the FPA from their advisers.

“Personally, because of the cultural differences, I would oppose the merging of the two organisations,” he said. “I do question [the FPA membership] because a lot of people are institutional and funds management [based].”

Riegelhuth said he would not support a merger until he had assurances that the board members of a merged body would be made up entirely of practicing advisers.

AFA chief executive Richard Klipin supported the need for a single industry voice and said that while it would be sensible to have one association representing all advisers, cultural and policy differences might prevent the organisations merging.

“Our view is far more ‘let’s collaborate on the things that we have in common’,” he said.

Joe Nowak, principal of Brisbane advice firm Joe Nowak Financial Services Group and three time national president of the AFA, predicted the creation of a single association for financial practitioners within two years.

“I find it very difficult to accept that we have an association for financial practitioners with fund managers or insurance company managers, and you’ll find 80 per cent of advisers will agree with me, and that’s why you’ll have the [merged] association,” he said, indicating that the merged group would not include fund managers or product providers.

Nowak said the AFA and FPA should form a working party to concentrate on presenting unified policies on issues such as retirement age, co-contributions and the underinsurance problem.