Copycat association for RFAs
The merged Life Brokers Association (LBA) and TNP Professional Association (TNPPA) will look to emulate the Institute of Financial Advisers, says one of the key players in the proposed amalgamation, however the IFA says there is only room for one adviser association.
Wednesday, October 24th 2012, 6:43AM 9 Comments
by Niko Kloeten
Meanwhile, the IFA has said it is open to working with the new entity, which is to be named the New Zealand Financial Advisers’ Association (NZFAA) if TNPPA members vote in favour of the merger at a special meeting on November 9.
TNPPA chairman (and former Professional Advisers Association chief executive) Dave McMillan said despite operating largely in the Registered Financial Adviser (RFA) space, the merged vehicle wouldn’t be a direct competitor to the PAA, which has “quite a different value proposition” to what the NZFAA will offer.
Instead he compared it to another industry organisation, the IFA, saying it would aim to provide similar services in terms of professional development except targeted mostly at RFAs.
“That’s a really good comparison; what we’ve really done is taken the standards of the code of professional conduct [for AFAs] in terms of professional development and made it compulsory for an RFA,” he said.
He said discussions between the LBA and TNPPA had been driven by members, a number of whom belong to both groups.
Several years ago the LBA was close to merging with the PAA, however that proposal was scuttled by some IFA members.
McMillan said the LBA/TNPPA merger would provide much-needed scale with more than 200 members combined.
For TNPPA members it would give access to long-standing LBA offerings such as the Corporate Club and its awards programmes, while LBA members would be able to achieve TNPPA designations including Associate Risk Adviser and Chartered Risk Adviser.
IFA chairman Tony Vidler said a group that had compulsory CPD for RFAs was a positive move in an industry where “professionalism is voluntary”.
He said the IFA would be happy to collaborate with the new group if and when appropriate; however, he said in the longer term there was only room for one professional association in the financial adviser industry.
“You cannot have competing and different standards and still call it a profession,” he said. “I think we need some guidance from the regulator; it’s an area where either the industry works it out together and comes up with a single body or regulators need to intervene.”
Niko Kloeten can be contacted at firstname.lastname@example.org
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