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
Results are out for the latest sitting of the ASIC financial advice exam, with the pass rate falling for the second consecutive sitting.
Adviser losses for the end of June have come in 143 per cent higher than the same period last year, and bring the total June loss to over 350.
ASIC’s enforcement action is having an active start to the new financial year, banning a former Queensland financial adviser for 10 years in relation to fees for no service conduct.
ASIC has confirmed the industry funding levy for the 2024–25 financial year, and how much licensees can expect to pay.
