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.
Directly authorised members of Aifa currently pay a fee at 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.
According to the minutes from an Aifa working group meeting of council members on the body’s funding, 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 declined to disclose the level of funding from directly authorised firms.
Aifa director general Stephen Gay 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.
“Networks make a very substantial contribution already and they are as keen as everyone else that we should receive an outcome that will be for the general good.”
Sesame Bankhall Group executive chairman and deputy chairman of the Aifa council Ivan Martin says: “Networks provide the major portion of Aifa funding from the intermediary sector. In turn, Sesame Bankhall is the biggest funder of all and we will continue to support the development of a strong trade body that can represent the interests of the adviser community.”