Industry backs AFA/FPA merger

2 November 2022
| By Laura Dew |
image
image
expand image

Adviser Ratings has found more than 80% of advisers back the merger of the Financial Planning Association of Australia (FPA) and the Association of Financial Advisers (AFA) as most prefer to hold only one association membership.

The merger was proposed  in September and the two bodies had been consulting with their membership on the proposed benefits of the merger.

The FPA and AFA boards said there are “substantial synergies and other benefits” for their members from a merger, such as creating a united voice and allowing stronger advocacy for financial planners and advisers.

Over three-quarters of members were required to approve the vote and Adviser Ratings research found 81% were in favour of it proceeding.

The merger came at a time when advisers were increasingly opting to hold a singular membership, the share of advisers holding one membership now represented over half of the industry.

The share who held multiple membership had declined from 22% in December 2021 to 20%.

A factor contributing to this could be cost as the FPA annual fee cost $995 and AFA cost $840 annually, although they had various different membership tiers.

Breaking it down between the two different associations, the FPA had seen the most pronounced growth of the two with 44% being members of the FPA, up from 38% in FY20. This compared to 13% who were AFA members, up from 12% over the same period.

Adviser Ratings posited the smaller volume of AFA members was because it had traditionally been  favoured by risk advisers who had been leaving the industry in high volumes recently.

Read more about:

AUTHOR

Submitted by Michael on Wed, 2022-11-02 09:40

Wonder how many AFA member responders reviewed the FPA website and recent history as a consumer focused organisation before they provided their views?

Submitted by Duke Nukem on Wed, 2022-11-09 13:55

Dump them both and start again.

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 5 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

18 hours ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 3 days ago