I spoke with Rod Severn this morning about the plans that the PAA and IFA now have to create a new representative body.
I think this is a good idea, partly, because New Zealand is a bit small for 18 different organisations to cover the interests of consumers, product providers and advisers. I think the interests of providing advice are sufficiently different from those others that I expect some division will remain. But that still leaves eight. To save space I shall use only their initials, in no particular order they are: SIA, IFA, PAA, SIFA, AAA, NZFAA, INFINZ, and IBANZ. Even between them, by some measures, they do not come close to having as members a majority of people that offer financial advice (using the broadest definition of that) because they don’t include most of the roughly 25,000 people that work in QFEs.
A new association bringing together the members of two of the largest would be a good start in building a bigger brand that may bring more members, more professionalism, and more consumer trust. More shared resources might allow for all sorts of things: more specialist resources to devote to different advice processes – the unique challenges presented by giving effective insurance advice is my area of interest, of course. As a member (associate) of the PAA I want to see how that can be enabled.
It is not given that this will happen. Members must decide to make it happen. Rod told me that the next steps in taking these proposals to members of both organisations are as follows:
Reports from the Chairs of both organisations, Bruce Cortesi and Michael Dowling
Meetings in 12 centres around New Zealand to allow discussion
A special general meeting in July
Here is a YouTube video released by IFA and PAA about their recent announcement.