Advisers question value of multiple memberships

Advisers say closer collaboration between professional associations may be reducing the incentive to be a member of more than one.

Tuesday, October 13th 2015, 6:00AM

by Susan Edmunds

Industry commentator Russell Hutchinson wrote on his blog: “One adviser wrote to me about the plans for the PAA and IFA to hold a joint conference - their only gripe was that by being a member of both organisations, they were in effect paying twice. I wonder how many advisers are members of both?”

The IFA and PAA held their first joint conference this year and have announced plans for another next year.

Adviser Simon Hassan belongs to both the PAA and the IFA.

But he said the reasons to belong to both were dwindling as the PAA wound up incentives such as its holiday homes scheme.

He said the combined conference also made him question the value.

“I haven’t ever gone to the PAA conference but I usually go to the IFA. It’s a little less appealing [as a joint conference] because most of the content I go to a conference for is not very related to the PAA. The motivational and social aspect to the conference I enjoy but what I need from a conference is more likely to be the IFA content.”

IFA chief executive Fred Dodds estimated about 40 of his 730 members were a member of the PAA too.

PAA charges about $650 a year. The IFA charges RFAs $500 including GST and AFAs $975.

Dodds said about 20 of SiFA’s 50 members were IFA members,and 60 members of TripleA are also members of IFA.

Dodds said the amount of double-up was an incentive for the bodies to work more closely together. “We’re all playing in the same sandpit.”

The response to the joint conference had been positive and sponsors could also see the benefits, he said.

He said many associations struggled for relevance, and estimated only about 40 per cent of advisers across the industry were a member of any professional body.

He said those advisers were getting the benefit of work done by industry groups - such as in lobbying the Financial Markets Authority - but not contributing to it. “It would be nice if they became members but we need to have a value proposition to make it as relevant as possible.”

The role of professional bodies is one aspect being considered as part of the Financial Advisers Act review.

Tags: financial advisers PAA