The start of a new era in financial planning
The creation of Financial Advice New Zealand today is being hailed as the start of a new era in financial planning.
Thursday, August 3rd 2017, 7:52AM 
3 Comments
Creating one body to represent advisers makes sense, but it can't just be three associations coming together as one with the same people doing the same old things.
That's just a waste of time and doomed to failure.
It has to be new and it has to be different.
The IFA, and its predecessor organisations have been in existence around 30 years now. I have watched how it is evolved from something like a glorified social club (those who went to conferences in the early 1990s will know what I mean) to an organisation and members who have become far more professional in they way they conduct themselves.
This will always be a slow evolution and today is another important milestone in that process.
I wrote previously on the critical importance of getting governance right, and that still remains one of the biggest factors to success.
There must be the right skill sets on the board to drive this organisation forward. Too many associations whether it be sports groups, charities, special interest member groups have board which are made up of well-intended volunteers. A professional body like Financial Advice must get this right.
Lobbying is important, but it is not the number one issue.
But to be successful the new association has to be focused on the consumer. And this isn't just creating some website and talking about advice. It has to be about ensuring the consumer is getting good advice.
The holy grail for Financial Advice New Zealand would be some form of self-regulation. It's an achievable goal, especially with the current leadership in the regulatory environment.
But it isn't going to happen overnight, this is a long journey of maybe five to 10 years to get there. But you can't get to your destination without starting.
The creation of Financial Advice NZ is the start.
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Financial Advice New Zealand will have exactly the same problem that all its ancestors have had - how does an entity take money (subs) off all its members, and then go out and promote only a few of them - 300 have CFPs and the other 9700 (just kidding....) don't.
How long should the 9700 stay if the Board joins Tina Turner and belts out those 300 are "better than all the rest".
Strategically it may be time given the regulatory regime we now have for CFPs to set up a separate CFP Society, where the only two entrance qualifications are that you hold a CFP and that you have paid the sub. And maybe/probably that Society should seek to be a (maybe the) CFP Certifier for NZ.
Although I had to give up my CFP when I resigned from IAFP over 20 years ago, I might just be prepared to give that establishment mission a go.
Any interested CFPs should be able to find me easily.
I can now see the organisation has an Establishment Board.
But I can't see that it has any members at the moment.
And I am not aware that it has had its first meeting of members whereby it could adopt a set of Rules and approve an application for registration as an Incorporated Society.
It's hard to know whether IFA and PAA can gift moneys to it - absent property authority, the best they could do is lend funds to get it started I would have thought.
If most/all the above is correct, isn't the entity an unincorporated entity such that personal liability would attach to the actions of the persons who are representing it?
Just asking.
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