The three member bodies IFA, NZFAA and PAA last week held Special General Meetings for their members to vote on the establishment of Financial Advice New Zealand.
The member-vote marks the end of the Working group’s development and included:
1. Approval to establish and commence operations of Financial Advice New Zealand as an independent entity.
2. Approval to use existing funds to establish Financial Advice New Zealand.
Speaking to NZ Adviser
, IFA board chair Michael Dowling
says November this year will mark three years of the lengthy process to establish the new organisation.
“But we’ve been very pleased because what we did engage in is a full consultative process so it was always expected to take time.”
The NZFAA’s David Yates told NZ Adviser
, “Our members started the process, in terms of voting to join the group, back in August last year.
“From our point of view it’s an initiative that makes eminent sense for the industry and really provides a vehicle from which to launch the future of advice representation in New Zealand – so we’re very pleased to be a part of it and very pleased to have been invited to be a part of it.”
The Working Group said the Constitution of the new Association will be ratified by the Boards of the IFA, PAA and NZFAA, and by the Establishment Board of Financial Advice New Zealand. After that, the new body will be incorporated.
An appointments committee has been working through over 40 applications for positions on the Establishment Board over the past month and the make-up of the establishment board will be announced at Conference on Thursday 3 August.
The Establishment Board will be responsible for getting Financial Advice New Zealand up and running.
This will include developing the operational infrastructure and building the framework for the new body to deliver on it's core objectives in the three areas: advocacy, standards and promotion.
Dowling says the objectives were built up by the membership feedback. “We did want to have a standard of advice that was recognised. The promotion falls into that as well and the intent of the body is to promote good advice and what good advice looks like for better consumer and adviser outcomes.
On advocacy, he says “once we’ve got that standard of advice right, is advocate for that within the stakeholders – the consumer groups, the government groups both legislator and regulator and also within industry partners and providers.”
"This really provides us with an opportunity to have a one voice approach to some of the issues that sit in the industry and really start to drive some of the outcomes that we are looking to try and address,” says Yates. “I think having this level of support and commitment from a broad range of advice clients speaks volumes.”
PAA chairman Bruce Cortesi
added, “We now have, along this journey, members of each of the three organisations with high hopes and expectations of this organisation going forward and that’s evolved over the last two or three years.”