A number of independent financial advisers have come together to launch a new member association.
The new group is founded by two Perth-based advisers, Christopher Young and Berivan Dubier, and Victorian-based Nick Bruining, who is also a former FPA director.
“Professional independent advisers are keen to get the message about the value of independent advice out there. The most effective way is to have a member association, run by members for the benefit of members,” Mr Young said in a statement to coincide with the association launch.
“Our membership criteria are pretty strict. We’ll only admit advisers that comply with S 923A of the Corporations Act and can legally call themselves independent on their FSGs. We’re only interested in established advisers with a clean history.”
The group, which is entirely run by volunteers, also confirmed that associate membership is restricted to retired CIFAA members and students or provisional providers undertaking their professional year.
Speaking to ifa, Mr Young said that the association’s formation comes at a significant time for the advice sector, particularly on the back of the federal election and Stephen Jones’ appointment as financial services minister.
“It’s likely that the government will continue to introduce regulations that encourage advisers to move towards the independent advice model,” he said.
“There has been a recent change where advisers are required to warn that they are not independent in their financial services guide (FSG), it’s likely that the newly elected government continues with this theme.”
Mr Young said that the CIFAA’s goal is to get the message out to consumer about the value of independent advice and to also encourage advisers to move towards independence.
“Advisers should join so they can help this cause,” he said.
Though the recruitment of an external CEO could be on the cards down the line, the CIFAA plans to apply surplus funds to promote the association in the short term.
All this does is send a clear signal that the FP industry has never been more disunited…I intend to join NAFA because no one can hear you scream in outer space which is what this makes me feel like doing.
These comments are all fine but the “effectiveness” of the existing associations in influencing government and regulator outcomes for the industry is there for all to see. – Pretty much bugger all.
As the secretary of CIFAA I can tell you that our focus is very much on outcomes for clients. We will be engaging in policy debates over things that matter to you and your clients. Superannuation law, Tax laws etc. No one is forcing anyone to join. However, S923a is an importnat distinction which may be a big part of the reason that people seek independent advice. Almost ALL independent advisers are batting prospective clients away. We are inundated with new work.
“Outcomes for clients”?? Sorry Nick, but refusing to give clients the choice to pay for insurance assistance via the commission system, so that you can market yourself as “independent”, doesn’t sound very client outcome oriented to me. Payment method has nothing to do with independence. It is a separate issue that is now very well managed and controlled through BID and FASEA Standards 3 and 7.
S 923A is flawed and out of date legislation that uses an inappropriate definition of “independence”. It ultimately makes it harder for consumers to access independent advice. As you say, the tiny number of advisers who are allowed to advertise themselves as “independent” under S 923A are run off their feet. But there are plenty of other independent advisers out there who are unable to advertise themselves as such, due to the flaws of S 923A.
Good luck Nick your new association will either be heroes or joining the conga line of zeros…
This seems to be driven by ego rather than any purpose or need. And what’s with the limitation on only accepting former members of a different group. Dodgy as.
maybe if every afsl sets up there own assocation we will be right!!! Have to be kidding we need consolidation not more
Agree with all comments re “Another Association”
So alli need to do is to arrange how i am paid, then I qualify to join, provided I haven’t been ousted, regardless of how my advice may be rated?
If you get in quick and pay there $1,000 they’ll through in some initials for you to use as well.
We’ve got dozen of industry associations but not one single professional body. I too will be retiring soon and look forward to organizing my holidays and charging fund managers to speak at my retirement gigs with me and my fifty mates, i mean members. [i]Wheres the first overseas conference this year? [/i][u][/u]
Happy to be there CEO .I could do a FPA…I could just say,,,”let’s see what happens”..and then “we need to work with the framework” happy to get my $300K salary for that an organizing a few webinars and my next holiday.
After reading this am now motivated to start yet another association known as NAFA which stands for :
Need
Another
Finance
Association
Looking to recruit ex astronaut Andy Thomas to Count us down and then launch…
Once we are in orbit the government will then take us seriously.
Hopefully Challenger don’t get involved with NAFA but Asteron could be a good fit…?
You’ll be playing into the hands of governemnt claiming they don’t know whcih association is the peak industry mouthpiece.
AIOFP is the O N L Y association worth joining, it was, in part, successful in unseating Josh Frydenberg. Clients don’t care about idependence, they care about unconflicted advice which, by regulation, we must deliver.
How do advisers provide unconflicted advice when they are recommending products managed by their own company?
Yes, AIOFP. Endorsed by Trio/Astarra since…
All advisers have been impacted by legislation and education standards…However, about 10% didn’t get the reform memo sent out in 2009, missed the second one in 2012, and said stuff it during the third in 2016, and yes have seriously been impacted, finding a new home at the AIOFP…today they go on holidays together with Peter called “conferences”, they moan about the Government, get counseling and or get drunk as one. Good luck to them, but not my cup of tea…neither is the FPA or the AFA, as I went out and joined the cheapest at $500.
Just what we need, another advice industry association to add to the 5 or 6 we already have not to mention 3 finance broker and a few stockbroker and risk adviser groups. Without a substantial budget I’m don’t know how this one will fare in selling the benefits of independent advice to consumers any better than, say, the AIOFP.
Great…..another association……..How many now…12, 13 plus?
When is someone going to have the guts to create a Professional Body only for Professionals?
“a member association, run by members for the benefit of members”….what if you are successful?…you may need to employ people to run it which is how the FPA evolved, but they are still an association.
And why the emphasis on independent advice?
Isnt the true criteria having passed the Fasea exam and met the Fasea Education requirements just as important?
Afterall regardless of whether you meet S923A, the legistaion you are governed by applies to everyone and assessed for ASIC and AFCA (for any wrong doing) as the same.
Even Standard 3 is applicable to everyone, even if you are independent.
Inevitably most advisers will and should strive for indepenence in meeting S923A but is it really the true mark of a profession or just one of the criteria?
Best of luck to the “association”……but some of us would have hoped it would be a Profession.
Yet another association? You’re kidding ! No wonder the politicians ignore advisers’ real input and wishes.
If there is anything that the advice industry doesn’t need it is another industry association. Lets face it the two big associations have performed at below expectations so there are good reasons for some new blood but at the moment things are just way to convoluted.
Just what we need yet another association, wake up people we need to consolidated under one association and have a single voice. So far the only association that has actually stood up for the advisers is the AIOFP the rest have been just a total waste of time and money.
Just what we need….. more associations !