AFA, FPA find ‘united voice’ to give members more bang for their buck

The Financial Planning Association of Australia (FPA) and the Association of Financial Advisers (AFA), are hoping to amalgamate in time for the new year.

FPA CEO Sarah Abood and AFA CEO Phil Anderson spoke to ifa to detail how this merger will benefit the members.

Ms Abood took note of feedback from both regulators and the government that describe the varied advice and advocacy points they receive from the profession. She hopes to see “a singular set of suggestions” to bring more steadiness and authority into the sector.

“I think, that alone gives us a much greater chance of achieving the positions that are really important to our members and to the profession.”

Mr Anderson noted that the distinctions between the AFA and FPA, while clear within trade media, is less so in mainstream media. This is where a combined expertise is most needed, he explained.

“If they have a definite go-to body to get comments and feedback, and for us to work constructively with them to promote reform initiatives… having that single voice will make a difference.”

Ms Abood added that observed reductions in the financial advice workforce was an incentive for the proposed merger.

“It's made us, on both sides, think really deeply about what is the best way to use members' funds and how we can ensure that our members are going to continue to be represented effectively.”

“We certainly feel that a merger is the logical next step,” she continued.

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

Mr Anderson went on to say that the merger will allow for the expansion of their two “advice-focused” associations, and will refine their skillset.

“The important thing is that this is bringing together the two largest professional associations in the financial advice space,” he commented.

“We're never going to go to one association that represents all financial advisers, but this is the most significant and material consolidation of the association market. It will make the biggest difference of any merger that could take place.”

If all members vote in favour of the proposed merger, the unnamed new association is intended to launch on the 1st of January, 2023.

Three weeks before the expected commencement, the government will be releasing the Quality of Advice Review. According to Ms Abood, “the timing couldn't be better”.

She said that the review is an opportunity to ensure “recommendations from the report that are really important to our members can be delivered.

“We have an unmatched opportunity right now to get changes made that will really benefit the profession and benefit consumers, and we must seize that opportunity,” she said.

“We've got to make sure that the Quality of Advice Review actually leads to substantial change to deliver those improvements that we actually need. We can't take any of that for granted,” Mr Anderson concluded.