Deborah Kent
The Association of Financial Advisers (AFA) is calling on members to reject a call from an adviser, via the Life Insurance Customer Group (LICG), for an Extraordinary General Meeting (EGM) to pass a special resolution to change the AFA Constitution.
“The proposed change would mean the AFA Board would not be able to form any policy position, or negotiate any policy position with Government, other associations or consumer interest groups, without calling a General Meeting and conducting a member vote,” said AFA President Deborah Kent. “This is a critical time in the profession’s development. AFA Members need representation at the decision maker’s tables. This change to the constitution would reduce and possibly remove the AFA’s relevance as a voice.”
The proposed constitutional change appears to have been motivated by the adviser’s perception that the AFA did not adequately consult members on the Life Insurance Framework (LIF). Ms Kent said this perception is misguided, as the AFA consulted extensively with members on the issue, including:
- Providing multiple opportunities for member submissions to the Life Insurance and Advice Working Group (LIAWG)
- Calling for comments and input from members on multiple AFA submissions on life insurance reform
- Conducting LIF round tables across the country
- Meetings with the LICG
- Hosting LIF webinars to seek input and encourage discussion
- Forming a Member Life Insurance Working Group
- Conducting a Life Insurance Transition roadshow attended by 1,000 advisers, 96% of whom reported feeling more confident about their future after attending
- Encouraging open and frank discussion at the 2015 AGM
Ms Kent said that the proposed constitutional change would not reverse the Life Insurance Framework (LIF), which has the support of both the Government and the Opposition.