FPA and AFA open to merger talks
|
|
The leaders of two competing industry associations representing financial advisers have indicated they will discuss the possibility of a merger.
Financial Planning Association (FPA) chair Julie Berry and Association of Financial Advisers (AFA) chief executive Richard Klipin confirmed they would approach the discussion of a possible merger of their associations with open minds.
Berry and Klipin made the statements in response to a proposal from the board of adviser-owned dealer group Matrix Planning Solutions for the two associations to stop competing and join forces.
Berry said the FPA board is “always receptive to a unified response when representing the interests of financial planners”.
“If the AFA is willing to accept one strong professional body representing public interest and the profession then we’re willing to engage in further dialogue,” Berry said.
However, the FPA chair indicated the association would not negotiate on the standards it has in place for members.
“Make no bones about it, we won’t walk away from our positions on remuneration, fee-for-service and professional practice,” Berry said.
Berry pointed to the AFA’s different stance on the remuneration debate, adding “that may be a sticking point for them”.
Klipin said the AFA “recognises that there is strength in numbers”.
“Influencing the political and regulatory agenda is a numbers game and the greater the numbers, the greater the influence,” he said.
Klipin said it had become “very evident” over the past two years that the financial advice sector needs to improve its communication with the Government, regulator, and consumers.
Klipin said the AFA welcomes the debate.
“We’re obviously happy to talk,” he said.
“The reality is there’s more than one association out there. I think both parties obviously have some ground to give and you’ve got to have the debate, you’ve got to engage in the conversation.”
Berry is meeting with AFA national president Jim Taggart today.
“I’m sure this will be one of the topics of many that will come up,” she said.
Taggart said the AFA board would meet shortly to discuss the Matrix letter, adding the issues raised in the letter are “matters not only for the board, but for our members”.
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.
