Adviser protection fund launched

At a meeting held in Sydney recently, the AIOFP membership approved a number of new measures aimed at expanding the non-aligned group’s presence as demand for independent financial planning escalates.

The association has launched a member protection fund (MPF), which executive director Peter Johnston said will operate similarly to the protection fund adopted by members of the Police Association.

“With the expected enhancement of ASIC’s powers, the innocent need legal, commercial and political protection from overzealous regulators who can ‘shoot and ask questions later’,” Mr Johnston said.

“The MPF has been designed along the same lines as the Police Association fund that protects the innocent and sends a clear message that if you take on one unfairly you take us all on.”

The AIOFP – which has traditionally been a lobby group for the owners of independently-owned AFSLs – has also voted to expand to include practising adviser memberships.

“We have had a strong demand for individual advisers to access our unique member services which up until now [were] only available if their licensee was a member,” Mr Johnston said.