Little appetite for a new financial planning body

1 June 2020

It would be extremely challenging to establish a new financial planning representative organisation with 70% of advisers who responded to a Money Management survey suggesting there is simply not room to do so alongside the Financial Planning Association (FPA) and the Association of Financial Advisers (AFA).

The survey, conducted in the wake of the FPA announcing a new strategy and the redundancy of around eight staff, found 94% support for a merger of the AFA and the FPA and very little support for the establishment of a new organisation.

Those survey respondents who believed the FPA and AFA should not merge, were then asked whether they believed there was room for the establishment of a new adviser representative organisation, with 70% responding ‘no’.

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This was despite the fact that 83% of respondents to the survey said they believed that financial planners would be best represented by a single organisation.

Importantly, while 70% of respondents who were members of the FPA said they did not believe they were being well-served by the organisation, compared to 47% of members of the AFA this was significantly below the nearly 82% who expressed a similar sentiment with respect to other representative groups within the financial planning sphere.

 




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I think this survey show most advisers favour progressive reforms of the existing structures rather than throwing it all out and starting again.

One reform that is long overdue for the FPA is removing the perceived conflict associated with offering membership discounts to advisers licensed by large institutions. I know the FPA will claim this is just an administrative efficiency that ultimately leads to cost savings for all members. However the price paid in lost credibility is too high. It creates the impression the FPA is beholden to large institutions, and it needs to stop.

Every FPA member should be individually invoiced for their fees, and the amount should not vary according to the adviser's licensee.

The FPA and AFA people need to take a long hard look at themselves, and think , what have they achieved for planners in the past 5 years personally in thier roles in the associations. If they cant fill out a A4 piece of paper at least, they need to consider, are they there just to get paid, or are they there to put their you know whats on the line for the members? I hate to keep referring back to this but the FSU , ie Nathan Rees has had more publicity in 6 months than the FPA or AFA have in years. There isnt anywhere for anyone to hide anymore, you have to be seen and heard or else do something else. This job isnt for pussyfooters that only want to speak at internal conferences where its safe and are scared of the TV, its for those that will be assertive and not lie down and roll over all the time.Enough of the weakness!

2x0=0
Whilst I agree with not starting a new association. What the FBAA and MFAA did for their members compared to FPA AFA will never be forgotten. FPA and AFA have to really step up and acttually produce benefit for members. We don't need the FPA to market to general public the good of seeking advice when no one is around to provide due to their inability to fight for us

For the majority of Advisers who join the FPA, it's only because of a) their fees are paid for them by large institutions or b) they don't to give up a CFP brand that ultimately they found in the bottom of a Cornflake box. By perpetuating this relationship with large insto's, and thinking about Government intervention, FPA members must be the bottom feeders that don't care about the industry they work in. FPA members in general keep referring back to the FPA to represent them but ultimately the FPA represents nothing more than large institutions. After 20 years I'll not be renewing my membership.

Ditto Yogi; feeling the same way myself after being a member for more than 20 years. Don't agree with the 'Cornflake box ' analogy though !

If we don't need a new association then could someone tell me who the FPA represents?

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