Lack of prominent industry voice hindering advisers

Speaking to ifa, Haydn van Nek, operations manager at Kelly Wealth, explained that the advice industry is in dire need of a prominent industry voice that doesn’t act only as a mouthpiece for the regulators.

This voice, Mr van Nek said, needs to be on the ground in the communities promoting the value of advice in the Australian financial system.

“You know, like the Pharmacy Guild. You don’t have to be a pharmacist to know about the Pharmacy Guild, but that doesn’t feel like it’s the same in our industry,” he explained.

While Mr van Nek believes the proposed merger between the Association of Financial Advisers (AFA) and the Financial Planning Association (FPA) could be positive, he questioned their input to date.

“I think that the AFA and the FPA merger might assist with that rather than having multiple groups. And those FPA committees, our local committee, why can’t they be out there petitioning our major university to make sure we get that accredited degree to help our industry?” he questioned.

Earlier this year, Peter Johnston, executive director of the Association of Independently Owned Financial Professionals (AIOFP), told ifa that there is “no doubt” that the 13 associations that are currently active in the industry are too many.

“There are 13 associations; it is ridiculous. Now, if you compare that to the mortgage brokering industry, there are two. They both got on, and they got it fixed.

“Canberra sits back and says, ‘[the advice industry] are just a rabble.’

“So it’s got to be rationalised. We go back [to] about four years ago; there were 30,000 member advisers back then. Now there are 17,000, there are still 13 associations. Something’s got to give.”

At the time, Mr Johnston predicted that some would eventually fold or amalgamate with others.

The FPA and AFA are currently in the midst of evaluating their proposed merger.

In mid-December, the groups issued a joint statement to invite feedback on a merger summary document and a draft consultation for the proposed merged association.

Sam Perera, national president of the AFA, said the boards of each organisation are gathering valuable insights from members through the consultation process.

“We have had the opportunity to meet and consult with many members around the country, over the past few months, and the message we have heard is that members see the benefits of a merged association providing a united voice for financial planners and advisers,” Mr Perera said.

Also commenting on their progress to date, David Sharpe, chair of the FPA, said: “We believe a merged association will result in more effective advocacy and will create a unified voice which would speak for all members, as well as the wider profession.”