A long-standing financial advisory association faces oblivion this week following a bitter board dispute over professional indemnity (PI) cover that spilled over into public acrimony, director resignations and potential legal action.
About 170 members have the chance to vote this Friday at a special general meeting (SGM) to decide the fate of the TripleA Association, an industry group that emerged out of the Axa Advisers Association – or AAA.
Incorporated in 2007 but boasting a 70-year history, the TripleA evolved in recent times from an adviser association largely funded by Axa (then successor owner, AMP) into a group almost solely focused on providing PI cover to members.
But a recent move to rejig PI arrangements triggered a board schism with chair Robbie Schneider ousted in a coup supported by directors Jason Kilworth, Samuel Rees-Thomas and Royden Shotter. TripleA deputy chair, Gemma Pope, quit at the meeting but later withdrew her resignation in a request – she said in an email to members – was knocked back by Shotter and Kilworth.
Pope later released the board minutes of the May 4 meeting that conclude with Shotter noting: “That was actually, I think again another productive session.”
The TripleA website still lists Schneider as chair.
On May 13 Schneider lobbied members via email to support an SGM to remove Kilworth and Shotter from the TripleA board.
“Jason Kilworth and Royden Shotter have not provided good governance for the Association because they have not dealt with their personal conflict of interest and have purportedly up seated me as selected Chair,” the email says. “Their actions have led to the resignation of Gemma Pope. They have also not acted in the best interests of the Association because of their continuing conflict of interest.”
Kilworth and Shotter are board members of Quadrant PI, a new group established in partnership with another advisory industry association, MySolutions, to develop a more cost-effective professional indemnity cover.
Under the Quadrant PI offer advisers would receive cheaper cover due to the removal of a commission that previously accrued to TripleA – its largest source of income. TripleA reported net income of about $130,000 from the PI commission for the 12 months to the end of March last year and almost $46,000 in membership fees.
In an email to members advising of the SGM set down for this Friday, the rump TripleA board members said:
“Part of our job as board members is to assess the ongoing viability and sustainability of the Association. It is the board’s view that the TripleA can no longer sustain itself financially and, because we are an Incorporated Society, the decision to wind up the Association can only be actioned with a member vote.
“As the Association has a body of funds (currently in the region of $285,000), there is then the question of how we distribute these as they cannot be passed back to the members directly. There are potential flow-on effects for PI cover which also needs to be discussed…”
According to the email, TripleA membership has dropped from about 240 two years ago to 170 today with only 130 using the in-house PI cover.
The member note also calls out Schneider for “actively disrupting efforts to move forwards, going as far as attempting to personally discredit certain board members”.
“Naturally, we do not believe this is helping anyone and is of detriment to the Association and beyond that, its membership,” the email says.
“Unfortunately, the TripleA’s constitution does not allow for the board to discipline Robbie, or remove him for gross misconduct and breaching our rules. For now at least, he remains on the board until we can vote at our upcoming SGM.”
Schneider, meanwhile, said any decision to wind-up the TripleA should be decided by members in a “separate conversation” after a vote to remove Kilworth and Shotter as directors.
“I regret that we are in this position and realise the significance of my request, but I believe after taking legal advice, that there is no better option that best addresses the continuing interests of the Association,” he said.
The TripleA SGM has been scheduled for this 9:30am Friday via Zoom.