AFA and FPA members vote 'YES' to merger
On Tuesday 28 February 2023, members of both the Association of Financial Advisers (AFA) and Financial Planning Association of Australia (FPA) voted in favour of the proposed merger of the two associations at Extraordinary General Meetings (EGMs) held in Sydney.
Across all resolutions, an average of 96.5 per cent of AFA votes and 96.7 per cent of FPA votes were in favour. The merger proposal required 75 per cent of the votes cast by eligible voting members to be in favour of the merger in order for it to proceed.
A new constitution has been approved and the name for the new entity will be the Financial Advice Association of Australia Limited – We will more generally be known as the Financial Advice Association.
This is an exciting milestone for the financial advice profession. By combining these two longstanding reputable associations, the new entity will be a powerful force in advocating for advisers with Government and regulators. The combined resources will also unite our Advice community under the one organisation, and provide superior services and support for members.
The association will have a single national (not federated) transitional board of 12 directors, made up of eight directors from the FPA board, and four appointed from the AFA board. For future director election cycles, eligible members of both associations will be entitled to stand for election. After the three-year transition period, the board would reduce to nine.
Sarah Abood will become the CEO of the Financial Advice Association of Australia, while Phil Anderson will become General Manager, Transition, overseeing the transition and transformation. David Sharpe will be chair of the new board, and the AFA board will nominate the deputy chair.
What are the benefits of the merger?
Advocacy
Education
Community
Events
Professional Standards
Member Support Services
A stronger unified voice for financial planners and advisers supports our advocacy goals.
Access to a wider range of resources, clarity on designations and more resources for CPD.
More ways for members to engage with each other and with their association to receive the support they need.
More scale, frequency and resourcing.
Supported through greater resourcing.
More scale and resources to deliver greater services to members.
Timeline
March 2023 - June 2023
Transition period including adoption of new name, constitution, new board formation, membership transition
3 April 2023
Expected legal completion date- new name, new constitution, AFA Directors join the Board and AFA staff transition to new entity
Mid May 2023
Issue of invitation for membership of the merged entity to AFA members
15 June 2023
Invitation closing date for membership of the merged entity for AFA members wishing to transition
July 2023
Windup of AFA structures, another EGM to windup the AFA and appointment of a liquidator
Frequently asked Questions
What will be the official designation?
CFP will be the primary designation moving forward. The FChFP and the ChLP designations which were previously offered by the AFA, will continue to be recognised and supported, although not available to new applicants.
What happens to membership fees paid to the AFA?
The new merged association will have a July to June fixed membership cycle, therefore any AFA member that has paid membership fees for a 12-month period that extends beyond 30 June 2023, will receive a credit for that period. In other words, the credit will apply for the pro-rata amount paid to cover the months from 1 July 2023 to the end of the member’s paid AFA membership year against their membership fees payable to the new merged association.
What happens if I am due to renew my membership between now and when the merged entity begins?
Members due to renew between March and June 2023 will be invoiced on a pro-rata basis up to 30 June. Their original AFA join date will therefore be retained within the new entity.
Will my fees for membership change?
For most AFA members, the merger means a reduction in their membership fees. For all other members, including FPA members, fees should remain unchanged.
