FPA and AFA merger in the works since last year

The Financial Planning Association of Australia (FPA) and Association of Financial Advisers (AFA) announced their intention to merge only this month, but it has been revealed that the move has been in the works since last year.

FPA CEO Sarah Abood and AFA CEO Phil Anderson joined a new episode of the ifa Show podcast this week to talk about the news, where Mr Anderson discussed how long the associations have been in talks.

“The conversation started at the end of last year but didn't really get into active conversation until the beginning of this year. We've done our best to keep it a secret since then,” Mr Anderson said.

“We couldn't do that until we're ready to make an announcement to members, but we've been working since then and making sure that we were as well prepared to say something publicly when the time arrived.”

Earlier this year, the industry bodies dismissed speculation that a potential merger was on the cards.

In March, speaking to ifa, AFA CEO Phil Anderson said: “The message from both bodies was that we are working closely together on a range of matters, including having joint meetings with politicians and the regulators.”

On the podcast, Ms Abood said there are a number of reasons why now was the right time to announce the merger, including the declining number of financial advisers in Australia.

“Obviously, the recent reduction in planning numbers has played a part, and it's made us on both sides, I think, think really deeply about what is the best way to use members' funds and how can we ensure that our members are going to continue to be represented effectively,” she explained.

“We can combine the resources of both the associations and really importantly, create a united voice and stronger advocacy for financial planners and advisers.”

The industry heads also confirmed that the “clear plan” for the new association will see Ms Abood take on the role of CEO, and Mr Anderson as the general manager.

Both the FPA and AFA will undergo extensive consultation with members and it is expected that members will vote on the proposal by the end of this calendar year.

The new association is expected to officially launch on 1 January 2023.

Listen to the full podcast with Ms Abood and Mr Anderson here.

Neil Griffiths

Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.

Neil is also the host of the ifa show podcast.