Phil Anderson bids farewell to AFA, criticises member bodies ‘shouting abuse’

The Association of Financial Advisers (AFA) officially ceased operations on 30 June, with Phil Anderson, its chief executive officer, formally transitioning to the role of head of policy at the Financial Advice Association Australia (FAAA).

In honour of his tenure at the helm of AFA and its 77-year history, Mr Anderson shared an extensive post on his private LinkedIn profile, emphasising the significance of professional associations. He also openly admitted that despite recent headwinds, he is “more optimistic” about the future than he has been for “a long time”.

“The momentum has changed. The impact of these never-ending and often ill-considered or poorly implemented reforms is understood. The damage has been done, and the focus is now on how to turn things around. The Quality of Advice Review response will be a critical part of that,” he said.

“Now that the merger of the AFA and the FPA, to create the FAAA, is virtually complete, we can look forward to a strong considered voice that is arguing in the interests of our members, seeking outcomes that will be good for financial advisers and also the clients that they serve.

“If we can achieve that, then ultimately this will be in the best long-term interests of the financial advice profession.”

Conceding that “we will undoubtedly have challenges in the future”, Mr Anderson said that he is confident “the winds will start to blow in our favour and we will achieve some important reforms”.

“Now as part of the FAAA, I am sure that the 77-year legacy of the AFA will continue to be honoured, in helping to create a community that fights for the interests of financial advisers, but also gives us all something to belong to and assistance to grow as individuals and to be the best that we can. And let’s not leave out having some fun along the way,” Mr Anderson said.

“Financial advice is a profession that delivers great value, is well respected and trusted by clients and makes a real difference in the lives of many Australians. With passion for what we do, and a real purpose, the future is bright.”

Professional associations are core participants

Acknowledging the pivotal role of AFA in the realm of financial advice, Mr Anderson underscored that “professional associations are core participants in the advocacy arena”.

Moreover, he used his post to criticise certain behaviours that, he said, have sown seeds of division in the industry.

“The last 10 years have been very difficult, however you cannot stand back, like a spectator at a football game, and yell abuse from the sidelines. Our profession does not need such division and distraction that does not change the outcome,” Mr Anderson wrote.

“Neither can you be missing during an important debate, but then later blame others for the ultimate outcome. The AFA has taken firm stands on many important issues along the way, and these positions were communicated to members at the time and published on the AFA website.”

Professional associations, he noted, “need to have a vision for the profession”.

“You can’t just oppose everything and flip around. You can’t stand back and refuse to engage or make it impossible for others to include you. Neither should you overtly choose one side of politics over the other.

“As a professional association, you are in this game for the long haul, and governments change over time. It does not help your members if you are forced to sit on the bench for the entire duration of the next government when there is a change in who is in power. It might create headlines, but rarely delivers enduring results.”

The ultimate role of a professional association, Mr Anderson said, is “to bring our members together, help them to be the best that they can and to assist them to enjoy and thrive in what they do”.

“This has not always been possible, and many have suffered in recent years, however, at the AFA, our primary focus has always been to achieve the best outcome that we could for our members.”

AFA members transition to FAAA

On Tuesday, FAAA revealed that, in total, it has already achieved over 8,700 membership renewals, with more to come.

AFA heritage members, it said, numbered 2,489 at the start of the renewal process across all categories. In total, 1,563 had transferred to FAAA as at the end of June, with 146 advising that they don’t plan to transfer.

The remainder includes duplicate members, members who have started the process but not yet completed it, and members who haven’t responded yet.