The proposed merger between the Financial Planning Association of Australia (FPA) and Association of Financial Advisers (AFA) will go forward after over 95% of voting members of both organisations were in favour.
The vote took place on 28 February at Extraordinary General Meetings (EGMs) in Sydney.
It had previously been announced that the full legal name of the new association would be the Financial Advice Association of Australia Limited.
The legal completion was expected to take place on 3 April 2023 and a transition period would run from April to June, including adoption of the new name and constitution, finalising and launching a new brand and logo, new board formation, and membership transition.
The transition was expected to be completed by 1 July 2023.
“The hard work starts now, we’re ready to hit the ground running,” said David Sharpe, FPA chair who would chair the new entity.
In January, AFA President Phil Anderson had also shared that the chief executive of the new entity would be Sarah Abood, currently CEO of the FPA.
Per discussions between the two financial planning bodies, the board of the merged entity would comprise of four AFA directors for a period of three years effective from legal completion, alongside eight FPA directors.
Some 3,000 members, including 500 proxy votes, were believed to have taken part in the merger vote, according to the organisations.
“Our members have recognised the importance of having a strong, single voice representing them to government, regulators and other stakeholders,” said Sam Perera, president of the AFA.
“During our discussions in recent months with members, it was clear that there was significant support for a merger, but we never took this for granted and recognised the importance of members having their say.”
According to Sharpe, the merger vote marked “a historic day.”
“We are coming together at a critical time, when we have a real opportunity to drive much-needed change to strengthen and grow the profession of financial advice,” he stated.
“I want to thank all members of the AFA and FPA who have engaged with us, asked many great questions along the way and taken the time to make their voices heard. You have put your trust in us to create a larger and stronger association to represent you, and we will be doing our utmost to deliver.”
A roadshow of the new organisation was expected to take place in May this year.
The merger had first been proposed to members in September 2022 and would focus on advocacy, education, professional standards, community, events and member support services.
No vote anywhere gets 95%. I’ll challenge the organisations to come clean and let us know what percentage of voting members actually voted. Plus as Roger says, the hard work should have been done years ago to protect us from the damage imposed upon what was once a thriving industry. End loser: the consumer.
Hard work starts now…..YAWN….Where have you guys been for the last few years…..
These two companies were, both losing money hand over fist, and they represent financial advisers… And you think they know what they are doing.