IAFP board comes out

The IAFP board states its position on forming a new adviser organisation with the IIAA.

Tuesday, September 29th 1998, 12:00AM

The board of the Association of Investment Advisers and Financial Planners (IAFP) has now come out and formally supported a merger with its fellow association, the Insurance and Investment Advisers Association (IIAA).
"Because of the gravity of the decision...your board felt it important to give a lead," chairman Denys Wright says, in a letter to members.
The board recommends members vote in favour of the merger proposal "on the basis that the proposed new organisation embodies ethics and standards of practice at least equivalent to those of the current IAFP, (and) that it represents the best way forward for the promotion of professional financial planning."

He also says that the proposal protects the Certified Financial Planner (CFP) designation.
The Denver-based CFP Board of Standards which owns the designation has conditionally approved the transfer of the CFP to the proposed new organisation.
Its main conditions are:

That CFP is promoted by the new organisation to at least the same extent as the IIAA's Chartered Life Underwriter (CLU) designation
That the CFP mark be promoted as financial planning's highest designation and that CLU is an insurance-only designation
The name of the new organisation not be changed without the approval of the CFP board
No other designations are embraced without the approval of the CFP Board
That the new organisation formalises its relationship with the American College that confers the CLU designation by March 1, and that no more CLU's are granted in New Zealand and the designation is not promoted until this condition has been met.

Now the IAFP has the CFP Board's approval it is planning to reschedule its postponed special meeting to vote on the merger.
Although a time and venue hasn't been decided the meeting will be held on October 21.
Wright says the CFP Board will send a representative from the US to the meeting.
The IAFP is going to use its page on the Good Returns site to communicate with members and answer any questions they may have. Readers can submit questions to the board by visiting the IAFP Page. Answers will be published on the page so they are available to everyone.

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