AFA chief executive Brad Fox has asked for support from members regarding the association's stance on proposed Life Insurance Framework (LIF) reforms should an AFA extraordinary general meeting be called.
In a LinkedIn post to members, Mr Fox criticised an AFA member’s call for an EGM to propose a resolution that the AFA withdraw its support for the LIF in its current form.
Mr Fox said an EGM and the proposed resolution would hark back to the criticisms the AFA received during the days when it had minimal influence negotiating the Future of Financial Advice reforms.
“If an EGM is called, and if the resolution is subsequently passed, members will have a board that cannot fully exercise the rights to govern,” he said.
“The proposed changes to the AFA Constitution would remove the ability of your elected member board to set the policy of the AFA.”
Mr Fox added that the AFA board would be forced to hold additional member general meetings to seek support before being able to agree or further negotiate terms with Parliament.
“This is akin to the AFA being asked to wait outside the room while the other parties make the decisions,” he said.
“The association would lose years of hard-earned respect and relevance.”
Mr Fox said further that the resolution would also mean the AFA’s working relationship with the FPA on life insurance would dissolve.
This would be an inconvenient time for such an event to happen, he said, noting the AFA and FPA need to “stay united on professional standards reforms” in order “to have influence with politicians, consumer groups, accounting bodies, academics and Treasury”.
Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.
You can contact him on [email protected].
Comments powered by CComment
The super trustee has been penalised for deducting $3.8 million in fees from members for advice services they did not ...
Following a guilty plea earlier this year, Fong Financial Planners has been convicted and sentenced for three counts of ...
With the ASIC levy already imposing a significant burden, the industry is worried about the potential consequences when ...
Never miss the stories that impact the industry.
Get the latest news! Subscribe to the ifa bulletin