Aifa and IFAP's new joint marketing initiative will be branded Advice First and headed by former Scottish Amicable chief executive Roy Nicholson, as revealed exclusively in Money Marketing.
Aifa and IFAP say the firm will have low running costs as its role is formulating marketing strategy to be implemented by IFAP while leaving Aifa with complete autonomy.
The firm will be chaired by Nicolson and includes Aifa director general Paul Smee, IFAP chief executive David Elms plus IFAs, product providers and consultants.
IFAPs board of product providers will provide the majority of funding for the new initiative.
Aifa and IFAP say Advice First is a pragmatic solution and not a compromise but the bodies do not rule out a merger in the future.
Advice First will be a non-profit-making organisation set up with £100 capital and a share price of £1 so it can be set up as a limited company. IFAP also announced that Fidelity Investments Life Insurance director Kevin McBrien will replace Douglas Claisse as IFAP chairman.
Chambers Morgan James IFA Marlene Shelton says: “This seems like a way round a merger and I have some scepticism about what it is trying to achieve.”
Smee says: “This lets us tackle pressing issues like Son of Myners, changes to polarisation and disclosure.”