AFA board rejects EGM call
The board of the Association of Financial Advisers (AFA) has publicly rejected a call for an extraordinary general meeting of the organisation to pass a special resolution being pursued by the so-called Life Insurance Customer Group (LICG).
AFA president, Deborah Kent, warned that the resolution risked stifling the voice of the AFA in policy issues in circumstances where there was little scope for reversing a Life Insurance Framework (LIF) that was supported by both the Government and the Opposition.
"The proposed change would mean the AFA Board would not be able to form any policy position, or negotiate any policy position with Government, other associations or consumer interest groups, without calling a General Meeting and conducting a member vote," Kent said.
"This is a critical time in the profession's development. AFA Members need representation at the decision maker's tables. This change to the constitution would reduce and possibly remove the AFA's relevance as a voice."
She said the call for the proposed constitutional change appeared to have been motivated by the adviser's perception that the AFA did not adequately consult members on the LIF — something which was wrong and misguided.
Kent outlined the consultative processes which had been followed by the AFA in terms of the LIF, adding that the proposed constitutional change would not reverse the LIF, which has the support of both the Government and the Opposition.
Recommended for you
The Australian Financial Complaints Authority has reported an 18 per cent increase in investment and advice complaints received in the financial year 2025, rebounding from the previous year’s 26 per cent dip.
As reports flow in of investors lining up to buy gold at Sydney’s ABC Bullion store this week, two financial advisers have cautioned against succumbing to the hype as gold prices hit shaky ground.
After three weeks of struggling gains, this week has marked a return to strong growth for adviser numbers, in addition to three new licensees commencing.
ASIC has banned a Melbourne-based financial adviser who gave inappropriate advice to his clients including false and misleading Statements of Advice.
