The Association of Financial Advisers and the Financial Planning Association of Australia are to merge, subject to member support.
Members of both associations have received notification of the proposed merger, in which the rationale argues that a single and united voice representing the interests of financial advisers in Australia – and the clients they serve – will deliver a better outcome for all stakeholders.
The merged association, the name of which is yet to be decided, is proposed to consist of an inaugural board that would comprise eight directors from the current FPA board and four from the current AFA board.
The new association’s CEO is intended to be current FPA chief, Sarah Abood, with AFA CEO, Phil Anderson to take on a General Manager role in the transitional arrangements.
Both associations require 75% of eligible members to approve the merger, where member consultation and the subsequent voting process will occur by November, for a targeted effective merger date of 1 January 2023.
The FPA and AFA boards have proposed that the FPA’s Certified Financial Planner designation be the primary designation of the merged association, but that the Fellow Chartered Financial Practitioner (FChFP) and the Chartered Life Practitioner (ChLP) designations previously offered by the AFA would continue to be recognised and supported, although not available to new applicants.
Current FPA Chair, David Sharpe, noted the close working relationship enjoyed by the two associations, particularly in recent years, and that by creating a unified voice, the merged association “…would add clarity and power to the positions it takes and avoid duplication of activity and erosion of its messages”.
Meanwhile, AFA National President, Sam Perera, added that any merged association would honour the heritage of both the FPA and AFA, in particular recognising the AFA’s 76-year history: “The AFA has a strong background in representing members from diverse groups and this would continue within any new association.”