Mortgage advisers could well end up in having a new association if plans released today get the green light from members of the IFA and PAA.
The two associations have told members that they are looking to create a new organisation to represent all advisers in New Zealand. It isn't been billed as a merger of the IFA and PAA - and for good reason. It probably wouldn't fly.
My guess, from the feedback I have had over the years is that mortgage advisers would be luke warm on such an idea. Afterall the PAA essentially took over the NZ Mortgage Brokers Association and many of its members feel like they are second class citizens in the PAA.
The PAA, they tell me, is much more focussed on serving the bigger part of its members - insurance advisers.
This indeed will be one of the big challenges for a new organisation. It will have to serve all of the different advisory disciplines equally no matter what proportion of the new body they will make up.
It is a challenge. If we look across to the manufacturer side of the industry it is clear the Financial Services Council has been unable to do that. As a result it has lost most of its life insurance membership.
The early reaction to today's news is been pretty positive, however it seems a good chunk of that has come from manufacturers and suppliers. It is clear they would rather only have to write a cheque to one organisation; to one conference. They are already getting a taste of that through the National Advisers Conference which is a joint IFA/PAA initiative.
My question for you then is this: Do you support the idea of creating one body to represent all advisers? Email your thoughts to firstname.lastname@example.org or leave them at the end of this article on the site.