The End of the AFA as we know it is a Time for Reflection

The end of the 2022/23 financial year brings mixed emotions for me as this marks the effective end of the Association of Financial Advisers (AFA) in the form that we know it.?My nearly 12 years of association with the AFA represents only around 15% of the total 77 year history of the AFA.?Whilst it is only a small fraction of the total time of existence, it has been a very eventful period.

The AFA has achieved a lot, won many battles, had many heroes, and faced and overcome many challenges.?The name has changed and it has been restructured over the years, however it has always operated with the members at the heart.?It was always about representing financial advisers and creating a community where they could grow and be the best that they could be.?Yes, and also along the way, the members have had a lot of fun.?I have been to 12 AFA conferences, and they stand out for me as fantastic experiences, where we have challenged what is important in financial advice, learnt a lot, recognised those who are doing really well and also had a lot of fun.?That is one of the key reasons that professional associations exist.

A Period of Intense Reform

Importantly they also exist for the role that they play in advocacy.?And that is the space that I have been heavily involved in for the last 12 years.?I have been there for the FoFA, TASA, Financial System Inquiry, LIF, Professional Standards, Royal Commission and QAR reforms.?This has been a very challenging time for our profession and for our members.?When you look back at all this reform, it is worthwhile looking at it in terms of both how well it was conceived, but also how well it was implemented.?Some of these reforms were poorly conceived and some were poorly implemented.?Some were both poorly conceived and poorly implemented.?Ultimately that has all contributed to the mess that we have today, although this is worthy of separate and detailed analysis.?The Quality of Advice Review is the opportunity to establish reforms that are well conceived and also to implement effectively and to the fullest extent possible.?That is our challenge over the next 12 months or so.

Professional Associations

Along the journey we have worked with many stakeholders and other associations.?On the whole that has been very constructive, often working together in difficult circumstances to achieve the best outcome possible.?There are those who say we should never have had LIF, Professional Standards or the Royal Commission reforms. ?However, these people were not there or not involved at the time and do not appreciate the strength of political demand for these changes.

We can think about other professional associations as both competitors and colleagues.?That is genuinely the case with all the legitimate associations.?We have a lot in common, but certainly some differences and our value propositions for members differ.?At the AFA, our primary competitor was always the FPA.?We did not see eye to eye on certain issues, however in my entire time the relationship was always effective and we were certainly able to work together on many important issues.?The other legitimate associations, whilst not directly in the same space (i.e., with a different focus or a broader membership base) have all worked hard in the interest of the advice profession.?We treat each other with respect, and work to build the recognition of financial advice as a profession, not to pull it down.?We don’t publicly criticise other associations or misrepresent their positions.?We certainly don’t go to the level of falsely claiming that someone did not turn up for an important meeting.

Professional associations are core participants in the advocacy arena.?We need to own the outcome and do everything that we can to achieve the best result possible.?The last 10 years have been very difficult, however you cannot stand back, like a spectator at a football game, and yell abuse from the sidelines.?Our profession does not need such division and distraction that does not change the outcome.?Neither can you be missing during an important debate, but then later blame others for the ultimate outcome.?The AFA has taken firm stands on many important issues along the way, and these positions were communicated to members at the time and published on the AFA website.

As a professional association, you need to have a vision for the profession.?You can’t just oppose everything and flip around.?You can’t stand back and refuse to engage, or make it impossible for others to include you.?Neither should you overtly choose one side of politics over the other.? As a professional association, you are in this game for the long haul, and Governments change over time.?It does not help your members if you are forced to sit on the bench for the entire duration of the next Government when there is a change in who is in power.?It might create headlines, but rarely delivers enduring results.

Our role as professional associations, is as it was always envisaged by the AFA - to bring our members together, help them to be the best that they can and to assist them to enjoy and thrive in what they do.?This has not always been possible, and many have suffered in recent years, however at the AFA our primary focus has always been to achieve the best outcome that we could for our members.

Looking Forward

In reflecting on the last 12 years, I am more optimistic about the future than I have been for a long time.?The momentum has changed.?The impact of these never ending and often ill-considered or poorly implemented reforms is understood.?The damage has been done, and the focus is now on how to turn things around.?The Quality of Advice Review response will be a critical part of that.

Now that the merger of the AFA and the FPA, to create the FAAA, is virtually complete, we can look forward to a strong considered voice that is arguing in the interests of our members, seeking outcomes that will be good for financial advisers and also the clients that they serve.?If we can achieve that, then ultimately this will be in the best long-term interests of the financial advice profession.?Whilst we will undoubtedly have challenges in the future, with a strong focus on our members, and a voice that the media and the Government must listen to, I am confident that the winds will start to blow in our favour and we will achieve some important reforms.

Now as part of the FAAA, I am sure that the 77 year legacy of the AFA will continue to be honoured, in helping to create a community that fights for the interests of financial advisers, but also gives us all something to belong to and assistance to grow as individuals and to be the best that we can.?And let’s not leave out having some fun along the way.?Financial advice is a profession that delivers great value, is well respected and trusted by clients and makes a real difference in the lives of many Australians.?With passion for what we do, and a real purpose, the future is bright.

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