AFA CEO shores up LIF support

In a LinkedIn post to members, Mr Fox criticised an AFA member’s call for an EGM to propose a resolution asking the AFA to withdraw its support for the LIF in its current form.

Mr Fox said an EGM and the proposed resolution would go back to the criticisms the AFA received during the days when it had minimal influence negotiating the Future of Financial Advice reforms.

“If an EGM is called and if the resolution is subsequently passed, members will have a board that cannot fully exercise the rights to govern,” he said.

“The proposed changed to the AFA constitution would remove the ability of your elected member board to set the policy of the AFA.”

Mr Fox added that the AFA board would be forced to hold additional member general meetings to seek support before being able to agree or further negotiate terms with parliament.

“This is akin to the AFA being asked to wait outside the room while the other parties make the decisions,” he said.

“The association would lose years of hard earned respect and relevance.”

Mr Fox said the resolution would also mean that the AFA’s working relationship with the FPA on life insurance would dissolve.

He said it would be an inconvenient time for such a possibility, saying the AFA and FPA need to “stay united on professional standards reforms” in order “to have influence with politicians, consumer groups, accounting bodies, academics and Treasury”.

Adrian Flores

Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.

You can contact him on [email protected].