Association slashes membership fees by 71%

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The annual Association of Independently Owned Financial Professionals (AIOFP) membership fee will drop by as much as 71%, as the organisation plans to tackle institution and industry fund domination.

According to AIOFP executive director Peter Johnston, the price slash represents a recognition of tough economic tough times and the aggressive growth path that the AIOFP board is seeking.

“We have decided to lower our membership fees to both assist current members and encourage new members to join,” he said, adding that cohesion and forgiveness should be the on every independent planner’s New Year’s resolution wish list for 2013.

“After four disastrous years of market volatility and political victimisation by the Federal Government, all independents should realise that we are a vulnerable minority faction and our future success depends on our ability to act as one commercial and political force,” he said.

“For too long we have been fractured by political infighting and manipulated by third-party influences where a divide and rule strategy suits their agenda.”

According to Johnston and the AIOFP board, they are the only organisation that has the scale and business model to tackle the domination by the institutions and industry funds going forward.

“Also of particular importance is the fact that we do not have any institutional influence in our membership or management, which can and does influence thinking and strategic direction. The AIOFP’s founding objective of furthering the commercial interests of its members demands that it finds solutions to platform/SMSF options, research, compliance, PI insurance, member legal protection and new client referrals.”

Johnston stated that the minimum entry-level fee has been reduced from $900 to $325 for a one-adviser practice, and the maximum fee reduced from $7,000 to $2,000 for the larger groups. This new fee structure will apply from 1 July for current members, and immediately for new applications.

“The AIOFP Board wants to encourage all independents to realise who the real competitors and threats to our survival are, and resolve any differences with our factional friends wherever possible. The old union adage of divided we beg and united we negotiate is relevant to our future survival,” he said.

More stories:

Association: Why we scrapped the term ‘planner’

Bouris to IFAs: Time to disrupt bank and insto dominance

  • Alleycat on 27/11/2012 12:30:16 PM

    Dear Peter,
    In the past I have used my real name in voicing my opinion and many agreed with my comments and the scary point is they included you.
    I was inundated with e-mails and telephone calls from around the country from people who didn't know me.
    I haven't got the time to play these games.
    I'm an educated CFP that has more to worry about than join another rinky dink organisation.
    None of you are truly willing to stand up to this morally bankrupt government on behalf of your members otherwise we would not be in the current parlous state.

  • Peter Johnston - AIOFP on 27/11/2012 10:14:21 AM

    Well now is the time to educate the ill informed. The AIOFP has never and will never recieve recieve rebate revenue. It is the member owned PCM entity that has embedded a margin [not a rebate]in a private label structure, that is what is recieved by the shareholders [and yes the AIOFP is a 2% shareholderon behalf of its members so we can lower fees for members]. Philippa, good to see you use your real name, as for the Alleycat that just about sums it up.

  • Alleycat on 26/11/2012 12:25:18 PM

    Dear Phillipa,
    It's not that I support volume bonuses but any enjoyed go via the Dealer Licensee, not any association.
    If the Leader of the Liberal Party can't show any intestinal fortitude, what makes you think any association claiming to represent the rank and file (us) will make any difference.

  • GC on 26/11/2012 10:04:37 AM

    “For too long we have been fractured by political infighting and manipulated by third-party influences where a divide and rule strategy suits their agenda.”

    Time to consider who has been in the leadership role for all this time??????

  • Philippa Sheehan on 26/11/2012 9:36:55 AM

    Is this because these this Association is still going to receive its volume bonuses now that the FoFA grandfathering provision is in place. I think so.

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