FPA and AFA open to merger talks

10 March 2010 | by Lucinda Beaman

Julie Berry

The leaders of two competing industry associations representing financial advisers have indicated they will discuss the possibility of a merger.

Financial Planning Association (FPA) chair Julie Berry and Association of Financial Advisers (AFA) chief executive Richard Klipin confirmed they would approach the discussion of a possible merger of their associations with open minds.

Berry and Klipin made the statements in response to a proposal from the board of adviser-owned dealer group Matrix Planning Solutions for the two associations to stop competing and join forces.

Berry said the FPA board is “always receptive to a unified response when representing the interests of financial planners”.

“If the AFA is willing to accept one strong professional body representing public interest and the profession then we’re willing to engage in further dialogue,” Berry said.

However, the FPA chair indicated the association would not negotiate on the standards it has in place for members.

“Make no bones about it, we won’t walk away from our positions on remuneration, fee-for-service and professional practice,” Berry said.

Berry pointed to the AFA’s different stance on the remuneration debate, adding “that may be a sticking point for them”.

Klipin said the AFA “recognises that there is strength in numbers”.

“Influencing the political and regulatory agenda is a numbers game and the greater the numbers, the greater the influence,” he said.

Klipin said it had become “very evident” over the past two years that the financial advice sector needs to improve its communication with the Government, regulator, and consumers.

Klipin said the AFA welcomes the debate.

“We’re obviously happy to talk,” he said.

“The reality is there’s more than one association out there. I think both parties obviously have some ground to give and you’ve got to have the debate, you’ve got to engage in the conversation.”

Berry is meeting with AFA national president Jim Taggart today.

“I’m sure this will be one of the topics of many that will come up,” she said.

Taggart said the AFA board would meet shortly to discuss the Matrix letter, adding the issues raised in the letter are “matters not only for the board, but for our members”.

Add a comment3 Comments

kevin ward | 10 March, 2010 at 12:05 PM
If we are to have one professional body it should be focused on the needs of adviser's and clients. Not Dealer Groups,Fund Mangers,Platforms etc.
Wayne Leggett | 10 March, 2010 at 11:48 AM
Notwithstanding the obvious differences between the two bodies, the logic of a merger is irrefutable. Mind you, similar dialogue was embarked upon a decade and a half ago, obviously to no avail. Let's hope the current "powers that be" can find sufficient common ground to make this proposal a reality, an outocme from which all stakeholders will benefit.
Michael Summers | 10 March, 2010 at 11:17 AM
Hallelujah! There is nothing that our professional associations can do to better serve the interests of both the community and financial planning practitioners and businesses than to merge. At a time when we are being urged to ensure that the public fully understands the benefits of professional financial planning, they are confronted with two organisations pushing their own barrows. We have had the example of the accounting professional (?) bodies tearing each other's throats out for years. Surely we don't want to follow in their footsteps. THERE WILL HAVE TO BE COMPROMISE so I urge the FPA and AFA not to start discussions with totally entrenched positions. The two associations have different constituencies - they have had different objectives - a merged association will benefit enormously from these differences. This has been too long coming - don't let your memberships down now!