G5 takes off with NZMBA on board

The New Zealand Mortgage Brokers Association (NZMBA) has joined the four other main financial advisory bodies in a pan-industry lobbying group.

Friday, April 3rd 2009, 5:48AM

by David Chaplin

Darren Pratley, NZMBA chair, said the organisation had officially accepted an invitation to join the Financial Advisers Associations of New Zealand (FAANZ) this week.

“As the industry heads toward regulation we think it's important that the NZMBA join FAANZ to work collectively on issues affecting all our members,” Pratley said.

He said the often-fraught relationship between the NZMBA and other financial advisory groups had relaxed recently as all parties recognised their common ground.

“There's more of a co-operative feeling now,” Pratley said.

Tony Vidler, FAANZ spokesperson, said Pratley attended a meeting of the group this week, the first time an NZMBA member had done so.

“There's a super-collegial feeling between all of us working on FAANZ,” Vidler said.

FAANZ was formed last year as a think-tank/lobbying group, comprising representatives from: the Institute of Financial Advisers (IFA); the Society of Independent Financial Advisers (SIFA); the Professional Advisers Association (PAA), and; the Life Brokers Association (LBA).

Vidler said FAANZ is currently helping to develop a professional education structure for the industry as regulation draws near.

As well, he said the group was looking at the issue of professional indemnity (PI) cover for financial advisers.

FAANZ has also established a working group to consult with the Securities Commission on common industry terminology, Vidler said.

“For example, the Securities Commission applies the term 'financial planner' across the board to describe all advisers but not all advisers consider themselves financial planners,” he said. “We've had four meetings with the Commission and they've been fantastic to work with.”

Vidler also said he was pushing the idea of formally merging the, now five, industry bodies into a single organisation.

“That's a personal agenda of mine,” he said. “In a country this size it doesn't make sense to have five financial advisory bodies. I think [a single industry body] will prevail eventually.”

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