From the Editor: It is vital AIFA emerges bigger and stronger

It seems somehow fitting the Association of IFAs (AIFA) is conducting a root and branch review at the same time as members are mulling their own futures in the run-up to RDR and beyond.

AIFA has not carried out such a major review since launch in 1999 and, according to chairman John Gummer (now Lord Deben) and new director-general Stephen Gay, it is long over-due. However, it is not just the RDR which needs to be taken into consideration but the impact of Europe as well as other regulations, they say.

The review will ask how AIFA can best represent IFAs in this rapidly evolving world under a brand new regulatory system. It will look at how the body is funded, whether it needs more resources and also the thorny question of whether to represent restricted advisers as well as independents post-RDR.

On the latter issue, Gay is remaining tight-lipped although he says he could quite happily argue both sides of the coin for which distribution channel advisers should choose.

One of the big questions for AIFA is: even though the regulatory system is changing, does this mean the role of the trade body must also alter? How radical should this shift be and are there resources in place to make this transition?

Gay says advisers are often surprised by the small number of staff at AIFA (around 14 in total) and part of the challenge will be working out how best to use them and whether further support is needed.

There is also the issue of how best to get IFAs’ message across to MPs. AIFA has been criticised over the past few months in the run-up to the TSC debates as many MPs said they were unaware of the impact of the RDR on advisers and consumers in their constituencies.

The trade body argues a lot of MPs were approached by advisers following their recommendations and it also published a guide to lobbying MPs.

Lord Deben says AIFA did not act too little too late: “I have been in parliament for 35 years and I can tell you that MPs are eleventh-hour figures. It is no good saying: ‘next year this is going to happen’. If we had done it earlier it would not have had the impact.”

However, while some may criticise AIFA’s methods, what is undisputed is the body does have the ear of the FSA. This will make it even more vital the new and improved AIFA is fit for purpose.

Katrina Baugh is editor of Professional Adviser and IFAonline.co.uk