Conservative peer Lord Howard Flight was today announced as president of the new adviser trade body being launched by Garry Heath.
Former IFA Association director general Garry Heath revealed further details of the association, named Libertatem, at a launch event in London today.
He aims to raise £1m in the first 15 months of the trade body, and to target directly authorised advisers.
Heath aims to recruit 4,000 individual advisers and 1,200 firms – 20 per cent of the DA market – in the first 15 months.
The trade body has a formation committee made up of nine members, including Highclere Financial Services partner Alan Lakey and Williams Farrall Woodward partner Steven Farrall. It will elect a board once it has grown its membership.
Heath says: “Over the last decade the industry has lost sight of why access to impartial advice is so important and we are at risk of killing off access to advice for ‘middle England’. We believe now is the time for a new trade association to bring a more positive future for both advisers and consumers.
“Now we have a majority Conservative Government; we have a golden opportunity to return accountability to regulation, to cut its costs and its intrusiveness and to ensure that the maximum number of advisers are available to the broadest section of society.”
Fees will be charged per firm at a cost of £20 per month for each adviser. A one-man band will pay £240 a year, while a two-man band will pay £480 a year.
Heath says the organisation’s turnover will be generated from membership fees and a “commercial arm”.
Heath says: “I plan to take the buying power of our members and use it to negotiate deals with certain providers, such as software companies and professional indemnity insurers. That will benefit the members, but also allow the trade body to take a small cut.”
Lord Flight says: “I believe it is important the advice sector is revived and nourished. Libertatem will aim to achieve regulatory accountability and consistency.”
Money Marketing first revealed Heath’s plans to launch a trade body last month.
Apfa’s latest accounts show it made a turnover of £797,842 and a surplus of £29,253 in 2014.