Even though most of the Dixons Advisory complaints are yet to be submitted, the CSLR has already allocated a $24 million bill to the industry. Good financial advisers will be forced to pay for the nefarious and neglectful acts of bad ones for years to come.
After years of regulatory turmoil and a violently shifting business landscape, the advice industry may be on the cusp of a relatively calm period. For advisers, this could be the right time to reflect, revise and even reset their business.
Ex-heads of advice associations line up to plump for merger
Fifteen former executives of the Financial Planning Association (FPA) and the Association of Financial Advisers (AFA) have released a joint letter imploring to vote ‘yes’ in the upcoming vote for the merger of the two groups.
Recent leaders such as Dante De Gori (FPA CEO 2016-2022), Marisa Broome (FPA Chair 2018-2022) and Phil Kewin (AFA CEO 2017-2021) were joined by others such as Brad Fox (AFA CEO 2013-2017), Mark Rantall (FPA CEO 2010-2016) and Julie Berry (FPA Chair 2007-2010) in putting forward a unanimous recommendation from the boards of both associations for a merger that is “in the best interests of members and of the wider profession”.
“This is a crucial moment in the development of our profession,” the letter states. “We have the opportunity to create a strong, unified voice that will strengthen and grow our profession, and positively impact the lives and financial wellbeing of Australians every day.”
The two associations agreed in principal to explore a merger on September 1, with two subsequent consultation periods held to discuss potential terms with members and stakeholders.
The proposal comes after the two advice associations have both been hit with declining membership and attendant revenues in line with falling adviser numbers across the industry. In tandem, both groups have been coming closer together on policy in recent years as the need for a united voice to policymakers and regulators has grown.
“Effective advocacy is consistently the number one priority for members of both associations and a merger of the FPA and AFA would create a single association which would speak for the profession,” said FPA Chair David Sharpe when the proposal was announced.
“By creating a unified voice, the merged association would add clarity and power to the positions it takes and avoid duplication of activity and erosion of its messages. It also increases the likelihood of achieving crucial advocacy positions.”
The ‘old guard’ of advice representation have carried a similar theme, with the group extolling three main benefits of the merger: a united voice, a more “financially resilient” representative group and a greater capacity for promotion of the industry.
For the merger to go ahead, three quarters of combined members must vote ‘yes’. Votes will be held at meetings of both association cohorts on February 28.
“Voting will open soon, and we strongly encourage you to get involved and support the future of our profession by voting ‘yes’, the letter stated.
The proposed name for the new association is the ‘Financial Advice Association’, or the ‘FAA’.
