Which financial planning organisations will survive?

financial planning financial planning association financial planners FOFA financial markets financial services council parliamentary joint committee FPA money management SPAA chairman FSC

5 February 2015
| By Mike |
image
image
expand image

Some financial planning bodies will struggle to survive in the financial planning regime evolving out of the recommendations of the Parliamentary Joint Committee entailing the adviser register and the requirement for planners to be members of an appropriate professional association.

That is the assessment of the immediate past chairman of the Financial Planning Association (FPA), Matthew Rowe who has used a column in the upcoming edition of Money Management to suggest that some the existing planning organisations will struggle for relevance and that some might be forced into mergers to survive.

Among the organisations he has suggested will be under pressure are the Association of Independently Owned Financial Planners (AIOFP), the Independent Financial Advisers Association (IFAA), the Boutique Financial Planning Principals Group (BFPPG) and even the Financial Services Council (FSC).

As well, he suggests that the Self-Managed Super Professionals Association (SPAA) will need to prove that Self Managed Superannuation Fund advice represents a profession and is not simply a sub-set of both financial planning and accounting.

"FINSIA has lost money every year since selling their education business in 2007. In 2013 it reported a loss of almost $3 million," he wrote. "Given it has a very small footprint in financial planning and is predominately bankers and financial markets focussed it is hard to see how it can reinvent itself as a professional association for financial planners and deliver an operating surplus by 2017."

Rowe said that while he recognised there was significant overlap in the accounting and financial planning space, he believed most financial planners would likely seek membership of a dedicated financial planning association that recognises planning's unique requirements as a standalone profession.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

1 month 2 weeks ago

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

1 month 2 weeks ago

Interesting. Would be good to know the details of the StrategyOne deal....

1 month 3 weeks ago

SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positiv...

6 days 22 hours ago

Six of the seven listed financial advice licensees have reported positive share price growth in 2024, with AMP and Insignia successfully reversing earlier losses. ...

3 weeks 5 days ago

Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equi...

3 weeks 4 days ago

TOP PERFORMING FUNDS