The Board of the Financial Planning Association (FPA) has proposed significant changes to the make-up of the association, which would see individual financial planners given preference over licensees and other stakeholders such as fund managers.
FPA chief executive Mark Rantall said the proposed changes would see the association amend its constitution so that only individual financial planners had the right to vote. Rantall said this would represent “far-reaching changes” to the association’s membership as it currently stands, with financial planning businesses and licensees restricted from being voting members of the FPA.
The association has often been criticised as being too broad a church, attempting to represent the interests of parties such as fund managers and financial planning business owners that may run counter to the interests of individual financial planners.
Rantall, in outlining the proposed changes at the association’s annual conference on the Gold Coast today, described them as the “most strategic shift in the 18-year life of the FPA”.
Also speaking at the conference, outgoing FPA chair Julie Berry said the changes would dispel any notion that the FPA represented “the big end of town”.
If approved, the changes would see voting membership of the FPA restricted to two categories — Certified Financial Planners (CFPs) and Associate Financial Planners. The existing ‘Principal’ membership category would be terminated.
Existing principal members and licensees would be given the opportunity to become ‘FPA Professional Partners’ — however they would not retain the right to vote, would not have board representation at a Board level and would not be able to use the FPA brand. The FPA’s Professional Partners would be required to have 25 per cent or more of their practitioners as FPA members.
The FPA is also proposing the use of a new sub-brand for practitioners, called FPA Professional Practices. To use that brand practices must have 75 per cent of their practitioners as FPA members, 50 per cent of practitioners as CFPs, while also agreeing to a three-yearly review to assess whether they meet the FPA’s criteria, including upholding its code of professional practice.
The FPA is also proposing new marketing and advertising campaigns be launched to “raise the community standing” of financial planners, in addition to changes to the brand and logo (pictured) used by the FPA.
The marketing campaign is expected to cost between $2 and $3 million per annum for five years, and would be funded via an advertising levy of between $100 and $220 per annum on the association’s members, with the FPA contributing up to $500,000 per year from reserves.
The proposed changes require the approval of 75 per cent of the FPA’s voting members. An extraordinary general meeting will be held on April 7 next year, and members can also vote electronically.
