IFA half-price sale now on

Outgoing IFA president, Lyn McMorran, said the industry body was trying to entice advisers who did not currently belong to a professional organisation.

"We've always been unsure of how to reach people who were not members," McMorran said. "We're hoping this [campaign] will help spread the word."

She said with regulation coming more advisers would need the kind of support provided by industry associations to help them operate under the new regime.

"We have a lot to offer people going through the authorisation process," McMorran said.

The IFA charges new members an application fee of $125 plus an annual membership fee of $475 for provisional members or $625 for general members.

In an email obtained by Good Returns, an IFA member explains: "The 50% off would apply to your membership subscription - so half price for you.

"There are also a range of member benefits announced that add serious value to being a member, together with the usual reasons for belonging to a professional association. And professionalism is the issue of the moment isn't it?"

The IFA's current half-price offer for new members is valid until the end of July.

Just under 1,100 members are listed on the IFA website. While no definitive figure has yet been published for how many people will have to become authorised financial advisers (AFA) once regulation comes into force, Commerce Minister Simon Power told ASSET magazine this March that the government estimated about 5,000 individuals would need to become an AFA.

However, since then estimates of AFA numbers have been revised upwards, with figures as high as 30,000 being bandied about.

Comments from our readers

On 25 May 2010 at 3:04 pm Independent Observer said:

For those who have read my blogs previously, you will know that I'm not a huge fan of the IFA. Over the decades that it has been in existence, the IFA has continuously failed to position itself as the leading voice for the financial advisory industry – despite numerous opportunities (particularly in the early days).

The latest tactic of reducing the entry price to join a professional body has the smell of an entity that is fighting for survival. Ask anyone who is successful in business: price is often the last argument when there are no more left.

As is the case with all industry participants, the solution is not price, it is value! If the IFA were delivering a robust value proposition then it would have little difficulties in retaining and attracting membership.

On 26 May 2010 at 3:08 pm Cynic said:

Or is it because they are expecting an exodus of many of their members post regulation and are moving pre-emptively to try and recruit fresh members to replace that future loss of revenue?

On 27 May 2010 at 11:48 pm Nigel Tate said:

I'm sorry but it concerns me that "Independent Observer" is showing his or her lack of independence in making the comments they have. A great deal of work has been done by the IFA over the many years that the government has been developing regulations for financial advisers, this can be seen in the latest code content which includes a great deal of the standards required already by the IFA.

The discount is offered to existing members (not to new applicants) to encourage them to introduce colleagues as new members, they have the option to share the discount if they so desire.

If I am not wrong didn't the PAA simply levy members to pay for the introduction of their first CEO, where was IO then?

To inform "Cynic" the strategy is sound marketing, all voluntary bodies will expect some drop off when the financial and retraining requirement pressures come on to their members and yes this is designed to replace and grow members that want the support of a sound professional body.

It is unfortunate for our evolving profession that we still have such divisive attitudes out there, especially when they hide behind masks of anonymity and don't have the strength of their convictions to speak out publicly in the open.

On 28 May 2010 at 10:08 am DividedWeStand said:

Look, whilst there are two equally lacking industry bodies representing us and people with personal agendas defending one side or the other, neither have the credibility needed going forward. Simple as that.

On 28 May 2010 at 12:06 pm Indepedent Observer said:

In response to the previous comments:

Anonymity works well in any environment where emotion overwhelms fact

Value, not price is the solution – irrespective of what the entity is. Whilst a price reduction for commodities can provide a short term solution, it will be a poor retention / gathering strategy by the IFA. I guess that time will be the judge on this one.

Whilst there is no dispute that “a great deal of work has been done by the IFA over the many years that the government has been developing regulations for financial advisers”, it will be interesting to assess whether this effort is considered successful. It appears that the Regulator is working towards their own outcomes, with little true interaction with the advisory community.

On 28 May 2010 at 12:09 pm Independent Observer said:

DividedWeStand: In response to your comments - my preference is for the NZ Financial Services industry to work collaboratively to influence the future of the industry. Unfortunately the industry is so fragmented, with numerous voices promoting divided causes. Until we can learn to work together as a team, the rule-maker will be the ultimate master of our futures.

IFA half-price sale now on

The Institute of Financial Advisers (IFA) has launched a recruitment drive offering half-price entry to the organisation if referred by an existing member.

Tuesday, May 25th 2010, 5:30AM 6 Comments

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