LBA commits to independent future

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The Life Brokers Association (LBA) has "put to bed" the issue of a merger and will continue to operate as a stand-alone industry body, according to newly-elected president, Ron Flood.

Friday, June 12th 2009, 12:01PM 1 Comment

by David Chaplin

Flood said a survey of the approximately 150 LBA members conducted prior to the group's recent conference revealed overwhelming opposition to a merger with any other industry body.

"There was no mandate for a merger," he said.

A proposal to merge with the Professional Advisers Association (PAA) was narrowly defeated at the LBA's 2007 conference.

Flood said the LBA has now been re-energised following its annual conference - held at the end of May - with a number of new initiatives now underway, including a plan to offer quarterly regional presentations in addition to the existing 'corporate club' meetings held in February and October each year.

The new quarterly LBA meetings are scheduled to kick-off this July with speakers and content to be provided by insurance advisory risk group The National Partnership (TNP).

"We've got a loose association with TNP," Flood said.

He said the LBA has also moved to address member concerns about formal education requirements expected under the coming regulatory regime by providing an "educational pathway" through the Adviserlink 'level five' courses.

"The level five courses will probably be the minimum requirement for risk advisers once the regulations are finalised," Flood said.

As well, the LBA will partner with the Institute of Financial Advisers (IFA) in some regions to offer the Adviserlink courses.

Flood said in its recent submission to the Securities Commission the LBA has also called for automatic authorisation for its members with practising certificates who have completed the level five educational standards.

However, he estimated that only "10 to 20" LBA members would need to be authorised under the proposed regulations with most of the group's membership operating solely as insurance advisers.

According to Flood, the new regulations would "encourage" risk advisers to align with financial planners and/or investment advisers so their clients' full financial planning needs could be catered to.

"I expect there will be more risk groups that have a dedicated AFA [authorised financial adviser] within the business," he said.

As well as Flood who replaced Kevin O'Gorman as president, the new LBA board includes returning members Jeff Page, Doug McNeill and Noel Charles along with first-time members Antony Plowman and Derek Abbott.

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