The Association of Independently Owned Financial Professionals (AIOFP) and the Finance Brokers Association Australasia (FBAA) are coming together to establish the Independent Financial Counsel (IFC) in a bid to counter the impact of the Joint Association Working Group (JAWG), which they argue has created political confusion in Canberra.
Speaking to ifa, AIOFP executive director Peter Johnston stressed the importance of seizing the present political moment to drive meaningful change, cautioning against relying solely on JAWG for advancement.
Mr Johnston revealed the intention of the IFC is to enlist the participation of two other associations.
“We will invite other like-minded associations to join over the next few months.”
According to the executive director, this collaborative effort will position the IFC as the primary source of information for politicians.
“All politicians will now be encouraged to seek information and direction from the IFC about adviser/consumer-related issues in both the financial advice and mortgage/lending disciplines. When you consider the mortgage/loan industry has around 18,000 members plus clients, they are also a considerable political force,” Mr Johnston said.
“Besides for our joint political advocacy success for members, we both see commercial and networking opportunities for our joint membership to benefit from.”
Mr Johnston opined that the AIOFP and the FBAA are “the only two adviser-focused associations that have delivered positive legislative outcomes for advisers and consumers”.
“We have successfully challenged the traditionally flawed political convention of associations ‘fence sitting’ by vigorously defending our members without fear or favour and with no need to have ‘alien’ associations involved.”
Mr Johnston has been a vocal critic of JAWG – which numbers 12 different groups – since its inception, opposing its inclusion of accounting bodies such as the Chartered Accountants Australia and New Zealand and CPA Australia in its ranks, and its alleged prioritisation of consumer needs over the interests of advisers.
“Twelve associations/groups of different origins and agendas in one room trying to reach a consensus will always be problematic,” he said.
“Well-informed sources confirm JAWG is currently an indecisive talkfest of disparate associations who cannot reach a consensus.”
Mr Johnston further argued that advisers no longer want their association to be indecisive, instead, he said, they want their association to “stand for something” and be prepared to “strongly defend when required to protect their interests”.
Highlighting the “potentially momentous occasion” of the upcoming 12 months, Mr Johnston said: “Politicians are always vulnerable leading into the re-election period where they must listen or risk losing their seat and livelihood”.
“This is the time politicians will listen, self-interest will always prevail, but we need to be strong, united and strategic. This is a once in a three-year opportunity, we must take advantage of it.”
