A Code Committee submission in response to the Financial Advisers Act options paper from the Ministry of Business, Innovation and Employment cautioned against handing more of an oversight role to the professional bodies. 

MBIE had suggested they could play a bigger role.

But committee chairman David Ireland said there were too many associations and they risked undermining public confidence if their governance of the sector looked self-interested.

The IFA and PAA operate alongside IBANZ, SIFA, NZFAA and the Triple A Adviser Association, among other groups.

IFA chief executive Fred Dodds said the question of whether some of the professional associations should combine to become one was being discussed.

The IFA and PAA already hold joint conferences.

Dodds said most of the professional bodies thought unification was a good idea.  “It is challenging but it will happen. Advisers generally are saying it seems like a good idea, see if you can make it happen. That’s being worked on.”

He said: “If there was one professional body, at the moment the regulator looks at it and says it’s not quite there, there’s too many of you. We’ve got to prove to the regulator and prove to the public and ourselves that we want to be a bigger professional body helping grow public confidence in financial advisers.

“If in two or three years’ time when we have got 3000 or more members of one bid body the code committee would say surely they could do something for us and the regulator would say that’s a big bunch of advisers represented, we need to listen to them a bit more.”

Dodds said there were a number of former members getting in touch with the association, wanting to rejoin. Many wanted access to CPD options and professional development days, he said.

Even QFE advisers had wanted to join, he said. “It’s an exciting but challenging future for adviser bodies. At least we’re talking in a far more positive way than five years ago.”