The IFA and PAA have received the go ahead from their members to form Financial Advice New Zealand.
The IFA held its vote on Monday 25 July and the PAA vote was held at the National Advisers Conference last week on Thursday.
“We are obviously very pleased, but not at all surprised,” says PAA chairman Bruce Cortesi
“The goals of Financial Advice New Zealand are common to all advisers – across all types of advice.”
But Cortesi says now the big job begins.
“Over the past weeks, members have asked how Financial Advice New Zealand will operate, its role in the industry, and what it will do for consumers and different types of advisers.
“Now that we have member approval, a working group will be established to consult with all advisers, to define the detail and bring the concept to life. This is going to a very busy but exceptionally exciting phase for advice.
“There are a number of key focus areas for Financial Advice New Zealand; the first being how to support advisers in helping New Zealanders be financially better off. This is a key opportunity to raise the profile of advice in general, as well as providing support and structures designed for specific types of advice.”
IFA board chair Michael Dowling
said it is a huge milestone for financial advice.
“Approval to form Financial Advice New Zealand is like advisers getting out the biggest flag they have and waving it at the public with one clear message – we are consumer-first professionals who want to make a positive difference in the lives of more Kiwis.
“I cannot stress enough how important it is that all advisers – members and non-members - who are interested in the new body – participate in the development phase over the next year. We need to account for many needs and establish a structure that best serves the overarching vision of Financial Advice New Zealand. Advisers will all have views – some similar, some different – on the priorities and requirements of Financial Advice New Zealand. The time to make those views known is now – and all input is greatly appreciated.”
An estimation of six to 12 months has been placed on developing Financial Advice New Zealand.
PAA CEO Rod Severn
told NZ Adviser
they are only going to form this entity once and they want to do it right.
“Certainly we won’t be dragging the chain, we want to get this done as quickly as we can – we’ve got momentum and we want to maintain that but it’s going to take as long as it takes and I cannot put a date on it right now.”
The process has already started and talks with the Auckland business school are in the works as Severn says they look at where to start putting down foundations.
“We’re looking at a blank canvas here to start up a brand new entity which is quite different to what the PAA and the IFA look like today,” he says. “So where do we start? We know what the end game is going to be - but where do you actually start – you’ve got to look at the Constitution, strategy, mandates, operations and staff.
“I’m really excited though,” said Severn. “It was a very solid, positive vote – almost everybody is well in favour of it and so I’m just thrilled and genuinely excited that we’ve got this opportunity now to really change the face of our part of the world and I think it’s going to be a great journey.”
The PAA and IFA have said further details will be provided about the Financial Advice New Zealand working group and development timeline in the coming weeks.