Closer PAA/NZMBA ties welcomed

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Institute of Financial Advisers (IFA) director Tony Vidler has welcomed news the Professional Advisers Association (PAA) and NZ Mortgage Brokers Association (NZMBA) are to work together more closely.

Friday, August 5th 2011, 7:35AM 6 Comments

Vidler advocated the creation of a single professional adviser body at the recent IFA conference in Wellington, telling delegates at a Q&A, "We won't be taken seriously as a profession until we have one body setting standards."

He said the closer ties between the PAA and NZMBA was "a step in that direction."

"On that basis, we would give it the thumbs up," he said.

"Anything that moves us closer to having a single professional association and having common standards in the industry we endorse."

Vidler said the creation of one adviser body would create a more powerful lobbying group but that the real benefit would be in presenting a unified front to consumers and having consistent standards.

"There really doesn't seem to be any point in duplicating things like ethical standards or complaints processes or understanding or interpretation of best advice," he said.

"They're not areas where you think there should be any competition."

For PAA chief executive Edward Richards, the tie-up is also part of the wider changes to the adviser market.

"I think it signals that the professional bodies are recognising the changing environment," he said.

"Advisers have had to change, with the regulatory and educational workload, so professional associations, the PAA and NZMBA included, have recognised that we need to change too."

Edwards said it was too early to speculate about closer ties with the IFA, as there was still work to be done on the detail of the PAA's closer ties with the NZMBA, and the wishes of individual bodies members would need to be taken into account.

However, he did recognise the benefits one professional body could have for the adviser industry.

"In the end it's all about promoting the role of the adviser, if we can do that better with one larger and more efficient organisation, then so much the better."

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