A proposal to form a new financial planning association has been described as being a disruptive tactic that does nothing to help the public.
The comments come from Association of Investment Advisers and Financial Planners (IAFP) chairman Denys Wright following an announcement from former IAFP board member Craig Myles that he intended to establish the Institute of Financial Planning. (See earlier story)
Wright says he is disappointed that people are continuing to disrupt the industry generally.
"Instead of the industry pulling together with a united front in its dealings with the public, he's trying to fragment it."
Wright says the idea of merging the IAFP and the Investment Advisers Association (IIAA) to form a new association, the Financial Planners and Insurance and Investment Advisers Association (FPIAA), is designed to create a professional organisation which promotes the financial planning industry and provides a better service to the public.
He says it is a pity the people behind the proposed institute can't accept the majority decision of the IAFP members to form a new association with the IIAA.
Wright says the allegations outlined in Myles' letter are "a misrepresentation of what happened."
He says the CFP Board of Standards in the United States is comfortable with what IAFP has been doing and the direction it is taking.
He doubts it will grant Myles' request to revoke the CFP licence arrangement it has with the IAFP.
Meanwhile, another planner, Duncan Balmer, has mooted the idea of forming an advisers association that would have as its primary function the protection of the public, rather than the promotion of the
interests of any particular sort of investment adviser.
The idea surfaced several months ago when he released his book, The Investment Jungle. To date only two people have contacted him about joining the proposed association.
A proposal to form a new financial planning association has been described as being a disruptive tactic that does nothing to help the public.