TNP's new association makes start

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TNP's new professional association aims to have about 100 members by the end of this year, but has just cracked double-digits.

Monday, March 12th 2012, 7:06AM 11 Comments

At meetings held around the country last month to explain TNPPA to TNP's brokers, "around 70% of attendees were saying either they wanted to join straight away or wanted more information," TNP director of development Dave McMillan says.

Those who have actually signed up are "into double figures already."

Only one out of TNP's 450 brokers has told him TNP should not be involved in such a professional association, he says.

TNP has said the decision to establish TNPPA was in response to requests for such an organisation by its brokers.

While membership is open to non-TNP brokers - at higher fees than are charged TNP brokers - McMillan says to the best of his knowledge, no non-member brokers have expressed interest in joining.

At the Napier meeting, McMillan told attendees TNP had discussed its plans with the Financial Markets Authority before proceeding.

The FMA had said: "In principle, we don't have a problem with what you're doing, but if you're going to do that, you have to have open membership. In other words, you can't have closed membership open only to TNP advisers," he said.

McMillan said the legislation requires professional associations associated with the financial services industry to have compulsory ongoing professional development.

The Institute of Financial Advisers (IFA) is the only other organisation currently imposing such a requirement on its members, McMillan said. "Beyond that, it's very fuzzy. Others recommend it or if you've got a specific designation."

While the FMA has warned against advisers using the term Registered Financial Adviser (RFA) as if it were a qualification, TNPPA will offer RFA's qualifications which can be used in marketing, McMillan said.

TNPAA's fees charged to TNP brokers are significantly lower than those charged by other professional organisations - $345 a year compared to the Professional Advisers Association's $552 fee, for example. Those attending the meetings for also offered 15 month's membership if they sign up before the end of March.

One of the Napier attendees queried the need for TNP to put resources "to create something that already exists. At this rate, we're going to have more associations than there are providers."

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