By Fiona Moore
The Financial Planning Association (FPA) has not ruled out a possible increase in membership fees in line with its proposal to modify the association’s membership structure.
While the FPA’s chief executive officer, Ken Breakspear, says membership fees on the whole won’t go up, he has indicated a possible marginal fee increase for affiliate members who do not have a designation.
“Management hasn’t decided as yet,” he says.
The proposed modifications to the FPA’s membership structure aim to create a clear career path for industry participants, ranging from those entering the industry right through to the Certified Financial Planner (CFP) designation.
“The changes to membership structure is about a career path and providing various entry points,” Breakspear explains. “It’s recognising people’s need to make a start in the industry.”
According to Breakspear, the proposed changes have been well received by FPA members. He says the brochure sent out to members explaining the proposed modifications was very positively received.
“I think it makes sense to have a career path like that and proper recognition is attractive,” Breakspear says.
The proposed model for change means the affiliate category will be upgraded to become a practitioner designation for tier one qualified advisers who satisfy the IPS 146 requirements as certified by their dealer.
A fellow designation would then be created for highly experienced and respected members, and a retired member category would also be created for those no longer working in the industry.
A general member category will replace the former affiliate category for members interested in the financial planning sector who are not practitioners.
“Not everyone will progress through to be a CFP, but it makes sense to reflect what is happening in the marketplace.”
Breakspear says over the past five years, there has been a great deal of specialisation in the financial planning industry.
The proposed membership structure seeks to recognise the role of paraplanners, technical researchers and compliance personnel in the financial planning industry.
“In the past I think there was the view that the main focus of the FPA was comprehensive financial planning, so financial planners did solely deliver on jobs,” Breakspear says.
“But the world has changed over the last five years. Now there is a number of specialists involved in the process. The member categories need to reflect what happens in the marketplace.”
Breakspear says he is confident the association’s members will pass the proposed changes. Members will vote on the modifications at the FPA’s annual general meeting to be held on the first day of the FPA National Convention in Brisbane on November 22. If approved, the modifications will become effective from July 1, 2002.
