APFA/WMA merger: Do advisers actually care anymore?

This week we learnt that APFA was to merge with the Wealth Managers Association. The announcement seemed to catch advisers and the press by surprise, with everyone speculating as to what it would mean for financial advisers.

In 2012, APFA had a turnover of ￡1.2 million. Last year, that figure had dropped to just ￡566,802. With their income halving in just five years, a merger was perhaps inevitable. By contrast, Libertatem's membership has doubled in just five months.

One of the biggest challenges emerging from the FCA in the near future is going to be prices and costs: The price of wealth management, the price of platforms and, most importantly, the price of advice. The next turn of the RDR screw will be an attempt to control costs. Needless to say this will fail – price controls invariably do – but they'll try it anyway if only to mask their own failings. 

But where will this new, “improved” merged body stand within that discussion? Are they going to represent the 80% of their existing income derived from wealth managers? Or will they take on board the needs of the newly acquired APFA members that will account for just 20% of their overall income?

If financial advisers want to create a fit-for-purpose trade association that truly represents their interests, they will need to raise circa ￡3.5m pa. That was the real term spend created just 18 years ago by APFA’s forerunner, so we know it is achievable and affordable.

Advisers generate over ￡6.5bn annually. If they committed just ￡1 in every ￡2,000 of income, or ￡100 per adviser, or 1% of their regulatory invoices to a trade association, this would be achievable. And then they would have true and focused representation in the corridors of power, instead of lipservice from a merged organisation that has no clear message, certainly as far as advisers are concerned.

Libertatem was launched because of the ineffectiveness of APFA. Nothing that has happened in the past few days has changed our view. And now we are the only dedicated and committed adviser association still left standing. There is no other forum or trade association solely dedicated to robustly representing the adviser community who have their client's best interest at heart. 

Libertatem's challenge is to raise the capital required to fill the void left by APFA, and grow into the trade association the profession needs.

The challenge for the advisers is to prove they care enough about the future of their businesses to join Libertatem and help us achieve our aim.

Join Libertatem today

It costs just ￡20 per month* to join and our online membership application form will take less than five minutes of your time to complete. You can pay monthly, quarterly or annually.

We look forward to welcoming you to the sector's most pro-active and effective trade association.

Together, we are stronger.

?* Membership fees are ￡240 per member per annum. This goes down if firms wish to sign up 3 members or more with the first two members being charged at ￡240 each and subsequent members being charged ￡120. It is not a requirement to sign up all R.I.s within a firm. Membership can be paid for annually, quarterly or monthly. Please email [email protected] for more details.