One small step for Advisers
Saturday, August 5th 2000, 12:27PM
Everyone thought the association was bonkers to hold a three-day conference in Wellington in the middle of winter. Well the risk was worth taking as the Capital city turned on a brilliant spell of weather for the duration.
Next, it would be fair to say there was a degree of dissatisfaction with the FPIA's inaugural conference in Auckland last year. These criticisms included the venue and the content. Also, there was a degree of mutual suspicion between the two newly united colleges (financial planning and insurance).
Neither quite trusted the other, and they weren't sure if they wanted to share the same bed.
The pleasant surprise of the 2000 conference was the apparent willingness for the two colleges to cohabit together and get along just fine.
That co-operativeness also appeared to extend to the association's other major stakeholder - the fund managers and life offices.
One of the theories behind this college collegiality is that the people who represent the extremes of the industry were not at the conference. They have either chose not to come or in some cases, particularly with life agents, moved to other organisations like the Life Brokers Association (LBA).
This is reflected in the apparent trend for more investment advisers to join the FPIA than risk advisers.
The willingness of the FPIA members to start to work together is excellent news for the association. However, it raises the question: Should the association abandon its two colleges and be a united advisory association?
Whispers have it that such a move may happen within the next two years because things are going so well.
The other major question, which is more fundamental, is what, if anything should be done about the LBA? It seems that this association has a renewed vigour and is keen to expand, thus leading to the situation that existed before the FPIA, namely the advisory industry splintered into two groups, one representing investment advisers (IAFP) and another for insurance agents (IIAA).
Such a move defeats the whole purpose of merging the IAFP and IIAA to form the FPIA.
While one can't deny the LBA's right to exist, if it is seen as a threat to the advisory industry, life offices hold the key. As primary funders of that organisation they could withhold financial favours.
Such a move has been mooted by some in the FPIA, but whether it is the right sort of move diplomatically is a separate question.
After all the two associations are trying to work together on the issue of adviser regulation, in concert with the Investment Savings and Insurance Association.
For the industry to grow, prosper and be recognised by the powers that be in Wellington, advisers need to talk with a united voice.
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