• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to secondary sidebar
  • Skip to footer
  • Subscribe
  • Twitter
  • RSS Feed

Investment News NZ

Investment News provides financial advisers news stories from the financial industry in New Zealand. Subscribe to our free weekly newsletter.

  • Home
  • News
  • Kiwisaver
  • Subscribe
  • About
  • Advertise
  • Contact
You are here: Home / Investment News / Adviser bodies start from scratch with open-ended marriage proposal

Adviser bodies start from scratch with open-ended marriage proposal

June 12, 2016

Michael Dowling: IFA chair
Michael Dowling: IFA chair

The proposed adviser über-body, Financial Advice New Zealand (FANZ), would start with a “blank sheet of paper”, according to Michael Dowling, chair of the Institute of Financial Advisers (IFA).

Dowling said the mooted new adviser organisation – to be created from the ashes of the IFA and Professional Advisers’ Association (PAA) – would develop a structure based on feedback from members after FANZ had formed.

While the two groups hired consulting business, Eleven, to research advisory industries both in NZ and offshore prior to the FANZ proposal, he said there was no intention to put a preferred organisational model to members prior to the vote.

“We’ve been careful to start with a blank sheet of paper,” Dowling said. “It would be wrong to [impose a FANZ structure] without getting a mandate from members.”

The two adviser bodies – comprising about 700 typically investment-oriented IFA members and the 1,200 or so mainly mortgage and insurance advisers who make up the PAA – would begin a series of national information sessions for members from June 20.

Both the PAA and IFA would convene respective special general meetings in July to vote on the FANZ proposal.

Dowling said the vote would focus on the creation of a new organisation rather than a formal merger or dissolutions of the IFA and PAA

According to the IFA FAQs, in the ultimate structure of FANZ would be determined in the 12 months following any formal approval.

“During this time, the existing membership of IFA and PAA will be transferred to form the founding membership of FINANCIAL ADVICE NEW ZEALAND,” the IFA says. “These members, and others who join the first twelve months, will be invited to provide the feedback that forms the body’s mandate and constitution.”

If approved, FANZ would be something of a back-to-the-future move for the NZ adviser associations, which have previously attempted to meld the various sub-groups – typically aligned with either insurance or investment specialties – into a unified advisory body.

The most recent NZ pan-adviser body, the Financial Planning and Insurance Advisers Association (FPIA), fell apart in 2006 after a seven-year effort, resurfacing as the slimmed-down IFA. Meanwhile, the PAA mopped up the larger group of insurance advisers before also tying in the NZ Mortgage Brokers Association in 2012.

Dowling said the FANZ proposal represents the next phase of evolution in the advisory industry.

“[Adviser bodies] have to ask where to best place ourselves for the benefit of financial advisers in the future,” he said. “FANZ is bigger than just the IFA or PAA – we want to appeal all advisers, including those not yet members of an industry body.”

He while membership of a professional body is not prescribed under the Financial Advisers Act (nor likely to be in the to-be-rebooted version), FANZ would offer value to members as a “principles-based and aspirational” organisation.

“The law is just about the minimum standards,” Dowling said. “We want the advisory industry to be aiming for good outcomes [for the public] rather than just preventing bad outcomes.”

In the year to June 2015, the IFA reported a net profit of about $24,000 on total revenue of over $781,000, which included $520,000 in member subs and over $80,000 of surplus conference income. Meanwhile, the latest published PAA accounts (for the year ending March 31, 2014) show the group lost just over $10,000 during the period on income over $1 million, including member fees of almost $600,000 and conference revenue of about $370,000.

Twitter0
LinkedIn0
Google+0
Facebook0

Read More » Investment News

Recent articles

  • On the industry play-list: four chart-topping regulations for 2021 January 15, 2021
  • ASB investment veteran among five Jarden hires; van Schaardenberg exits Findex January 10, 2021
  • Wholesale disclosure loophole for $750k under question January 10, 2021
  • Bear marks time for last dance as bubble-pop music sounds January 10, 2021
  • UK competition regulator gaffe keeps GBST in play for FNZ January 10, 2021
  • Russell positive on climate change but negative screening could be a no-no January 10, 2021
  • How the world’s biggest funds coped in 2020; NZ Super tops five-year figures January 10, 2021
  • Managers tipped to double tech spend by 2030 January 10, 2021
  • S&P results highlight nine-year run for NZX; value peeks through as 2020 ends January 10, 2021

Primary Sidebar

WEEKLY NEWSLETTER

Sign up here to receive our weekly newsletter.
Learn More »

Most Recent Investment News

David-Boyle

On the industry play-list: four chart-topping regulations for 2021

January 15, 2021

ASB investment veteran among five Jarden hires; van Schaardenberg exits Findex

January 10, 2021

Wholesale disclosure loophole for $750k under question

January 10, 2021

Bear marks time for last dance as bubble-pop music sounds

January 10, 2021

UK competition regulator gaffe keeps GBST in play for FNZ

January 10, 2021

Search by Keyword

Investment News

  • On the industry play-list: four chart-topping regulations for 2021 January 15, 2021
  • ASB investment veteran among five Jarden hires; van Schaardenberg exits Findex January 10, 2021
  • Wholesale disclosure loophole for $750k under question January 10, 2021
  • Bear marks time for last dance as bubble-pop music sounds January 10, 2021
  • UK competition regulator gaffe keeps GBST in play for FNZ January 10, 2021
  • Russell positive on climate change but negative screening could be a no-no January 10, 2021
  • How the world’s biggest funds coped in 2020; NZ Super tops five-year figures January 10, 2021
  • Managers tipped to double tech spend by 2030 January 10, 2021
  • S&P results highlight nine-year run for NZX; value peeks through as 2020 ends January 10, 2021
  • Why 2021 shapes as a big year for governance activism January 10, 2021

Investment News Archive

Most Popular Articles

  • Westpac NZ flags retail advice sale to Forsyth Barr posted on October 19, 2020
  • The horror year in technicolour: free KiwiSaver 13 report released posted on September 30, 2020
  • Flint set to spark platform competition posted on August 17, 2020
  • NZ share-trading splurge could trigger tax alarms… posted on October 5, 2020
  • Four to the core: Smartshares to expand, rearrange and reprice ETFs posted on June 22, 2020
  • Kitset KiwiSaver scheme set to unwrap in spring posted on April 27, 2020
  • Funds eye bargains, self-shoppers hoard cash, KiwiSavers turn conservative posted on March 15, 2020
  • AMP Capital NZ chief quits amid equities exodus offshore posted on August 28, 2020

Sponosored Content

David-Boyle

On the industry play-list: four chart-topping regulations for 2021

David-Boyle

Charge of the lite (advice) brigade

Nathan Field

Pandemic Baby Boom a Bust

Star-date 2020: it’s inflation Jim but not as we know it

Quick-links to Popular News

  • FAP Compliance
  • Coronavirus
  • New Appointments
  • Financial Markets Authority (FMA)
  • Kiwisaver
  • Climate Change
  • Crypto Currency
  • Blockchain
  • Insurance

Secondary Sidebar

Recent News

  • On the industry play-list: four chart-topping regulations for 2021 January 15, 2021
  • ASB investment veteran among five Jarden hires; van Schaardenberg exits Findex January 10, 2021
  • Wholesale disclosure loophole for $750k under question January 10, 2021
  • Bear marks time for last dance as bubble-pop music sounds January 10, 2021
  • UK competition regulator gaffe keeps GBST in play for FNZ January 10, 2021
  • Russell positive on climate change but negative screening could be a no-no January 10, 2021
  • How the world’s biggest funds coped in 2020; NZ Super tops five-year figures January 10, 2021
  • Managers tipped to double tech spend by 2030 January 10, 2021
  • S&P results highlight nine-year run for NZX; value peeks through as 2020 ends January 10, 2021
  • Why 2021 shapes as a big year for governance activism January 10, 2021

Footer

Copyright ©2020 InvestmentNews.co.nz — All Rights Reserved ·— Terms & Conditions