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.
Thursday, May 10th 2007, 6:55AM
“We are as tight as a drum,” SiFA spokesman Murray Weatherston told Good Returns.
Missing from this group was the fourth adviser association the Institute of Financial Advisers.
Weatherston says that it appears the IFA wants to convert its group into the industry APB and invite members of all the other associations to join.
“The terms they want to play with us are unacceptable,” Weatherston says.
The G3 associations say in a joint statement that: "An APB must be independent of any adviser association and should restrict itself solely to the statutory standards and other requirements that will be incorporated in legislation."
"An independent APB will not be in conflict in any way with the rules and objectives of any particular association.
"We are aware that some other industry associations prefer an alternative strategy, in that an association be the natural APB. However, it is clear that no existing industry association has 100% coverage of advisers it seeks to represent. Further, most industry bodies have a multitude of objectives, principally for their members’ benefits, which could be seen to be in conflict with a APBs function."
Weatherston says the G3 “have not excluded the IFA.” In fact went out of his way to say they are welcome to join the G3.
Weatherston says the G3, which accounts for around 800 advisers, reckons it can create a stripped down APB which would cost around $250,000 a year to run.
Previous estimates were that a full-blown APB would cost around $2 million a year.
Weatherston says there are ways of creating a body which will do all that is required under the legislation for the lesser amount.
The G3 will become the G2 when the expected merger of the Life Brokers Association and Professional Advisers Association goes ahead. LBA members are due to vote on the proposal later this month at their annual meeting.
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