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.

Friday, May 11th 2007, 2:05AM

by David Chaplin

Simon Hassan, IFA president, told Good Returns yesterday the IFA was ready to form its own approved professional body (APB) without the support of the Professional Advisors' Association (PAA), Society of Independent Financial Advisers (SiFA) or the Life Brokers Association (LBA).

“We will become an APB - it’s our first duty to members,” Hassan said. “We have told members we have everything in place already and it [APB status] will come at no extra cost.”

He said the split between the IFA and the other industry bodies involved in joint APB discussions was precipitated by the PAA’s decision to offer competing professional services - in particular its move into the education space.

“The PAA now wants to be a professional body rather than a member benefits organisation, so clearly there is no point in the IFA co-operating with it on the APB if it wants to compete with us,” Hassan said.

The remaining three parties to a joint APB agreement said in a statement released on Wednesday “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,” the statement said.

However, Hassan said the IFA has led the way in setting professional standards while the PAA, SIFA and LBA have focused on providing member benefits.

“We’re different from them in that we are just a professional body,” he said.

While the split between the advisory industry bodies on the issue has been acrimonious, Hassan said the IFA would probably end up being the single APB for financial advisers.

“It’s a law of nature that there will be only one,” he said.

“But I’m disappointed it has taken this turn. There is a lot of prejudice, baggage and ego involved [in the APB split].”

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