Federation concept unsupported
IIAA explains why it pulled out of merger talks with the IAFP.
Thursday, December 4th 1997, 12:00AM
To have your say on the merger go to the editorial page.Editorial
The Insurance and Investment Advisers Association (IIAA) says it could not support the idea of a federation of advisory associations so decided to withdraw from merger talks with the Association of Investment Advisers and Financial Planners (IAFP).
In a letter to IAFP members, IIAA president Ian Clark says the decision to withdraw came from the board.
"After our negotiators initially agreed with the new proposal the board decided that it could not accept the compromise because it was at odds with the proposal supported by members of both associations and not in the spirit of the original negotiations."
IIAA did not wish to move to this impasse, he says. "Rather we were committed to follow the sensible instructions of our respective memberships. We were not comfortable with unilateral and extreme change from our agreed intentions especially because this seemed to be at odds with the decisions of our members."
In the letter, Clark urges IAFP members to support the establishment of a single professional association.
He says the earlier proposal for an association with two colleges for the adviser specialties was an ideal solution to the problems facing the merger.
The IIAA would welcome an association which provided professional standards for CFPs and insurance and investment advisers, he says.
Meanwhile, the eight people who requested the December 18 special general meeting spell out what they see as the two key issues to be decided.
The first is "whether or not the board has the right to ignore the wishes of members" as expressed at an SGM in July.
The letter says by trying to renegotiate the principles of the proposal which members agreed to at the July SGM, the board was contravening its rules.
It claims this contravention "effectively caused the IIAA to withdraw from negotiations."
A second and separate issue is who should be on the negotiating committee.
At the upcoming SGM there are two resolutions which address this issue. The first is personally sponsored by IAFP chairman Rodger Spiller, and seeks that he and deputy chairman Mark Hubber remain on the negotiating team.
If members vote against this resolution Spiller and Hubber have said they will resign.
A later resolution seeks for former negotiators Gary Stevens and Phillip Matthews to be reappointed as the negotiators.
The letter argues the former negotiators are the best to do the job as they achieved the original proposal, however it also says if Spiller and Hubber remain as the negotiators they must abide by the mandate of the July SGM.
The authors of the letter say their actions are not personally motivated, rather the initiative is being taken by three former chairmen (two of whom are life members), two former board members and two leading members of the Standards Review Committee, and is backed by more than 80 IAFP members.
Editorial
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