AIOFP announces association changes

Speaking at the AIOFP conference on the Gold Coast last week, executive director Peter Johnston said the body is working to develop a new association that will represent advisers who meet the section 923A Corporations Act definition of independence.

“There is going to be a growing desire for advisers to use the term 'independent',” he said.

“So we are setting up a sister association called the Association of Independent Financial Professionals. It would give our members who want to be 923A-compliant a vehicle to do that.”

There will also be a panel within the AIOFP to represent risk advisers and do advocacy work, Mr Johnston said.

“We think there is a real hole in the market for risk advisers, where they need an association that will act in their best interests,” he said.

“We’ve been approached by many risk advisers saying ‘we want you to represent us’.

“So we are going to let it be known to the politicians and to the regulators that we have a strictly risk division, so they can come to us if they are any issues they want to resolve around advisers and the risk market.”

At the same time, Mr Johnston announced that the AIOFP has struck a referral deal with Statewide Super, which will formally commence in January.

“We have been formally appointed by Statewide. They are outsourcing an advice function to our certified financial strategists,” he said.

“We think industry funds need to be able to offer advice to their members but they can’t do it themselves. So we think we’ve got the perfect business model for them and that’s giving them confidence that they are dealing with the right type of advisers.”