The AIOFP’s long term aspirational plans for the Advice community dates to 1998 when the Directors of 3 independently owned practices met to discuss key market dynamics and how best to combat them.

The two greatest negative political hurdles identified were –

  • Advisers been being unfairly blamed for PRODUCT FAILURE.

It was principally these 2 issues that inspired the AIOFP to be established in 1998 to protect Advisers. Unfairly being blamed for product failure was widely damaging our reputation and allowing institutionally infiltrated Associations to represent Advisers in Canberra was and has proven to be disastrous for the Advice community.

The unfair stain of product failure, ignorance of the financial services industry by most Politicians and Associations masquerading as pro Adviser friendly entities led us into the darkest period in Advice history.

We have a short, medium and long-term plan to assist both the Advice Community and consumers incorporating the following objectives –

Long term

  • Educate all Politicians on how the Financial Services industry operates and the diametric difference between ADVICE and PRODUCT MANUFACTURING.
  • Present the Advice community as a powerful political force that will not tolerate being poorly or unfairly treated.
  • Communicate to the Advice Community the political and commercial value of all Advisers being represented under one cohesive umbrella and the beneficial aspects for consumers.

Medium term

  • Educate all Politicians on which Associations are representing ADVISERS, CONSUMERS and PRODUCT MANUFACTURING when seeking information.
  • Present/position the AIOFP as the peak body for the Advice Community who will stand up for Advisers when deemed necessary without fear or favor.

Short term objectives with the new incoming Government

  • Seek Ministerial assistance to avoid the FASEA Exam September ‘cliff’ facing thousands of Advisers by restructuring the Exam format.
  • Encourage the Minister to formally accept risk commission as a remuneration option for consumers.
  • Increase the 60% Risk commission ceiling to 85%.
  • Immediately appoint a panel comprising Industry experts, ASIC and AFCA representatives to rationalize the compliance regime [could be achieved relatively quickly]. A great outcome for consumers to reduce the cost of Advice.
  • Implement Comm Hayne Compensation Scheme of Last Resort [CSLR] legislation in its Royal Commission recommended form to protect consumers.


Despite the traumatic experience with the last Government, the positives have been the final realisation by Politicians that the Advice community and their clients are a powerful political force that should not be messed with. The demise of Frydenberg is a great example of Advisers and clients assisting with this strategy.

The other painful but positive realisation is that the Advice community cannot ever have non-Adviser focused Associations representing them in Canberra. The LIF experience of 3 Institutional infiltrated and/or consumer focused Associations [who all got it so wrong with future market ramifications] representing Advisers and consumers was one of the greatest legislative blunders in Parliamentary history.

Having 13 Associations in a diminishing Adviser market is wildly problematic, Canberra is critical of this dysfunction, and it must be amended. The AIOFP medium term objective is to have an Industry panel of 3 containing Stockbroking, SMSF and Risk/Financial Adviser focused Associations dealing with Canberra in their specialized fields.

The AIOFP has proven its ability and willingness to stand up to Political parties, we will and always have acted in the best interests of our members. We will not engage in sycophant behavior or sit on the political fence unless it suits our member’s interests.

With an incoming new Government, it is the perfect time for change and Advisers are in the driver’s seat to achieve it by voting with their wallet and political capital when joining an Association.


Peter Johnston | Executive Director
Association of Independently Owned Financial Professionals
Suite 1211, 1 Queens Road, Melbourne VIC 3004
P 1800 111 203, d 03 9863 7574, m 0418 857 621 | Download my business card

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