PAA/LBA merger fails to get the numbers
The Life Brokers Association (LBA) will continue to operate in its own right after its members failed to approve a merger with the Professional Advisors Association (PAA) at its AGM last week.
Sunday, May 27th 2007, 1:56AM
by David Chaplin
In a letter to PAA members sent out last Friday the group’s CEO, Dave McMillan, said a future merger of the two adviser bodies could still be on the cards.
“Members at the AGM did not preclude further discussions to be held in the future with the aim of further rationalising the number of associations representing risk writers,” McMillan said in the letter.
“We see our associations focusing on the formation of a long term relationship creating benefits for both parties in the future regardless of whether this ultimately involves a merger.”
The merger talks became public in March this year with both McMillan and LBA head, Alex Rogers, backing the deal. Last month McMillan said: “Alex Rogers [LBA chief] and I are of the view that the merger is positive for both parties.
The PAA gains from an increased membership and access to some top class facilities that the LBA has developed such as their Business Development Groups. LBA gets the benefit of belonging to an organisation with a full range of benefits and services backed up by paid employees.”
Rogers was not able to be contacted before this story was published.
If the merger had been approved the PAA membership would have swelled from about 600 to approximately 720.
The PAA is aiming to have 1,000 members by 2009.
While the PAA/LBA merger has been canned for now both industry bodies and the Society of Independent Financial Advisors (SIFA) remained committed to developing a joint Approved Professional Body in time for new adviser regulations.
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