AIOFP anticipates positive industry consolidation in 2024

Speaking to ifa, Peter Johnston, the executive director of the Association of Independently Owned Financial Professionals (AIOFP), said 2024 will be “an emphatically positive consolidation year” for the advice profession, where favourable outcomes in compliance rationalisation will reduce the cost of advice for consumers.

“This occurring during a widely predicted uncertain 2024 global economy will then encourage more consumers to seek advice, a great outcome for the advice industry and consumers,” Mr Johnston said.

In 2024, Mr Johnston aims to cultivate stronger ties with other adviser-focused associations, emphasising that he views this year as crucial for advisers to unite and collectively advocate for key issues with the government.

“The expected close next federal election will assist our lobbying efforts to get bipartisan agreement on critical issues including higher risk commissions, elimination of certain aspects of the consent forms and SOA alternatives where adviser professional judgement will hopefully play a significant role,” Mr Johnston told ifa.

“We have also initiated discussions with other adviser-focused associations to support a united approach in Canberra,” he added.

In December, while expressing his dissatisfaction with Financial Services Minister Stephen Jones’ announcement on the Quality of Advice Review, especially regarding the establishment of a new adviser designation – qualified adviser – Mr Johnston emphasised the imperative for advice associations to finally collaborate.

“This manoeuvre is not the work of Minister Jones who is consumer-focused, this is the work of the institutionally aligned (and duplicitous) associations lobbying behind the scenes to serve their masters with promises of political donations leading into the 2025 or sooner federal election,” he said at the time.

“It is time for the advice community to finally come together and use our combined political strength to our advantage and that of consumers.”

Also at the time, Mr Johnston stressed that “the getting together of the few adviser-focused associations to collaborate would be a welcomed sight in Canberra”.

“Politicians only want to deal with two entities at best not the circa 14 associations muddying the waters over the years with different agendas and some with duplicitous divide and rule intentions in mind.

“We can no longer have the institutionally aligned and accounting-focused associations thinking they are representing advisers, it is not helpful to our cause, our profession, and our perception in Canberra. Although they may have a minority component of advice in their ranks, they should stay with their own specific discipline and only get involved by invitation.”