Rift opens between associations
Therepresentative body of advisers inAXAdealer groups is considering a bold withdrawal from the peak industry council of adviser associations, protesting that it represents institutional and not adviser interests.
The Authorised Representatives Association’s (ARA) board, representing the interests of more than 650 AXA advisers, will consider withdrawal this week from the National Council of Financial Advisers Associations (NCFAA) — made up of representatives from adviser associations of large dealers such asAMPandMLC.
ARA chairman Leo Menkins says the withdrawal is being considered because the NCFAA has a tendency to “toe the line” of theFinancial Planning Association(FPA), which he says represents institutions more than advisers.
FPA acting chief executive June Smith says the directive of the FPA is to represent its members.
“Our policy standards on disclosure and recent stand on leading the debate on soft-dollar commission can hardly be seen as taking the stance of large institutions but is instead driving professionalism,” she says.
Menkins says the ARA is disappointed that the FPA has attacked the findings of the Joint Parliamentary Committee on Corporations and Financial Services. The FPA vetoed the report — recommending against disclosure of commissions on risk products — without surveying or communicating with its members.
The ARA also cites its recent efforts, in tandem with AXA, to gain interpretation under the Privacy Act that would allow its advisers to take clients and client information on leaving the dealer group.
Menkins says ARA attempts to push this stance industry-wide have not been well-received by the NCFAA, which is dominated by dealers such as AMP, that has an adviser force that cannot leave with their clients.
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