IFA Promotion chief executive David Elms is telling IFAs they should prepare to pay more for its services, saying it is time they started recognising the value that being registered with IFAP brings to their businesses.
Elms also believes Aifa should be fully funded by its members. He says the only way Aifa can be truly independent as a trade body is if it breaks financial ties with product providers.
Between 80 per cent and 90 per cent of Aifa's funding comes from IFA members but Elms says in an “ideal world” the trade body would be completely funded by IFAs.
His comments come just a week after Aifa director general Paul Smee was criticised by the Treasury select committee for product providers' cross-subsidisation of IFAs' Financial Services Compensation Scheme costs.
Smee says some providers are associate members but he strongly denies that their presence affects its independence.
Smee says: “Every trade body I know has associate members. This is not a unique or unusual situation. Having associate members in no way compromises our independence.”
Elms says there are plans to charge IFAs more for the services that IFAP provide. Companies currently pay a one-off fee of £250 per head office and £100 for every additional office.
He says IFAs should look to the post-depolarisation world and realise the value that IFAP brings to their businesses in terms of differentiating them from other types of advisers.
Elms says: “Given the growing value of IFAP's marketing programme on our members' bottom lines and the opportunity of differentiating the IFA brand post-depolarisation, we are considering ways to attract additional support from members who want to market themselves more actively.
“In an ideal world, it would be good to see the value that Paul Smee and his team deliver, recognised by Aifa's members fully funding its activity.”