The curtain will fall on the IFA Association next month after a turbulent
five years of existence.
IFAA board members have decided to recommend the winding up of the
association after receiving guarantees of financial support to fight
potential law suits from unhappy former members.
The disbanding of the IFAA, necessary to funnel its 2,600 members into the
new Association of IFAs, stalled after legal advisers warned board members c
ould be open to court action from unhappy former members.
Directors had refused to wind up the association unless it received
indemnity guarantees from Aifa.
But at a board meeting this week it emerged that the unnamed Lloyd's
broker which underwrites the existing insurance policy for IFAA directors
would cover legal challenges from former members.
The association will now be disbanded and the board will recommend members
sign up to Aifa.
The membership will be asked to vote on the proposals at an extraordinary
general meeting, probably some time in August.
All key members of staff, excluding director general Garry Heath and one
other, have secured positions with the new association.
A board member says: “The IFAA board is now happy to wind up the
association and to recommend the transfer of members to Aifa. It is a very
good deal for the membership. One hopes it is a next stage forward to
single representation for the whole industry.”