Advisers unimpressed with APB failure

A clear message is developing over the fight about who should regulate advisers following the news last week that the joint Approved Professional Body (APB) concept has fallen apart.

Tuesday, May 15th 2007, 5:00AM

Good Returns reported the story last week and has provided the only detailed comment from the Institute of Financial Advisers (IFA) about why it decided not to form an APB with three other adviser associations.

Following those reports readers have responded to a well-read Blog on the topic. The view coming through is that advisers are not impressed and will vote with their feet and leave one association for another. (Links to the Blog and comments are at the bottom of the page).

Auckland adviser, Jamie Coltman, who heads Integrate FS (IFS) says the breakdown “threatens to destroy a unique opportunity”.

He is a member of both the IFA and the Professional Advisers Association and is calling on the former to “reconsider its position before advisers reconsider their membership of the institute.”

His message to the IFA is this: “Get your act together and seize the moment for us to be under one umbrella. Reconsider because your members will be reconsidering who they wish to represent them.”

Coltman agrees with the G3 (PAA, Society of Independent Financial Advisers and Life Brokers Association) that an APB “must be independent of any adviser association and should restrict itself solely to the statutory standards and any other requirements that may be included in expected legislation.”

He sees the stoush as being “no more than a turf war” and involves a fight over who can validate the qualifications standards for the financial advice sector.

“Financial planners and others in the risk management sector have a core purpose in common,” Coltman says. “It’s their job to offer good advice. To be able to offer good advice they need to be trained and qualified. It doesn’t matter who validates that training as long as standards are audited and are consistently transparent.”

COMMENT: What becomes of the broken hearted?
READERS' RESPOND: Advisers have their say on the collapse
IFA SAYS: There can be only one: IFA

The Institute of Financial Advisers (IFA) has labelled the move by three rival industry associations to form an approved professional body as “unhelpful” and unlikely to benefit consumers. G3 GO IT ALONE: Adviser associations split on APB structure
The so-called G4 group of adviser associations which were working together to create a single Approved Professional Body has become the G3 and is likely to be down to two groups soon.

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Advisers unimpressed with APB failure

A clear message is developing over the fight about who should regulate advisers following the news last week that the joint Approved Professional Body (APB) concept has fallen apart.

Tuesday, May 15th 2007, 5:00AM

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