Aifa considers higher fees for network members
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Aifa is considering introducing higher membership fees for networks to bring their contribution more in line with fees paid by directly authorised firms, Money Marketing understands.
The move is being considered by a working group made up of Aifa council members set up to tackle how the trade body will be funded in future as part of its strategic review.
Currently directly authorised members of Aifa pay a fee at a firm level and for each of their advisers. Money Marketing understands that networks pay a fee for the network and the number of registered individuals, but do not pay a fee at firm level.
However networks bring with them a large number of members, which would make it more difficult if Aifa was to collect and oversee these fees on an individual basis rather than receive single payments from networks.
Almost 90 per cent of Aifa members belong to a network, contributing a total of £185,000 a year. This equates to 33 per cent of all IFA contributions and covers 11 per cent of the trade body’s costs.
Aifa director general Stephen Gay (pictured) says: “The funding discussions are continuing within Aifa and everybody is co-operating to find an optimal solution to deliver the trade association we all want.
“As far as networks are concerned, they make a very substantial contribution already, and they are conscious they are leaders within the IFA community. Networks are as keen as everyone else that we should receive an outcome that will be for the general good.”
He adds that no decision has been made on fees for next year.
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Readers' comments (2)
Julian Stevens | 26 Sep 2011 4:43 pm
Goiven that serious questions already exist as to the value of AIFA's achievements for its membership, increasing fees is likely to lead to yet further reductions in numbers. Whilst many would be prepared to accept that AIFA is sincere in its objectives, if what it actually achieves is extremely limited, then is it worth continuing to pay to keep the ship afloat?
For example, I note that AIFA has only recently started making noises about the injustice of the FSA's denial to IFA's of the protection of the longstop against stale complaints ~ surely, it's a bit lame to be coming to the debate this late in the day?
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Joe Wyatt | 26 Sep 2011 7:09 pm
Julian's right. Aifa has consistently, if not deliberately, misread the mood of IFAs and failed to provide leadership. Time to put it out of its misery so we can get some proper representation.
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