Aifa’s raison d’être is unclear as Cummings departs

Chris Cummings’ resignation from the Association of Independent Financial Advisers comes at a key time for financial services and the trade body itself, which faces tough questions over its future. 

The next two years will herald a change in regulation and the regulator, while the resignation of Chris Cummings (pictured) from the Association of Independent Financial Advisers (Aifa) may prompt a change in the trade body.

By 2012 advisers will be subject to a new regulatory regime and Nick Cann, chief executive of the Institute of Financial Planning (IFP), said that Cummings’ resignation as director general of Aifa raised questions about the future of the body. Cummings will take up a new role as chief executive of TheCityUK promotional body.

Case for new mandate

Cann believes Aifa needs to secure a new mandate from its members and make some hard choices about what it stands for. ‘Aifa have encouraged existing members to make that transition [to the new model] but the line of fire moves and who do they represent post-retail distribution review (RDR)?’ said Cann.

Aifa faces tough decisions about whether it will continue to represent the significant number of its members who will only offer restricted advice after 2012, said Cann (pictured above). A new mandate could drive away existing members but the remaining advisers would give the organisation a steady base to build on, Cann believes.

Who does Aifa represent?

Stephen Page, director of Bury St Edmunds-based Page Russell, is not a member of Aifa as he feels the organisation does not represent his interests. ‘I think it got to the point where we were looking at the representation but found that it [Aifa] was not close to our core ethics,’ said Page.

Page believes Aifa represents traditional, commission-based IFAs rather than new model businesses. He is instead a member of the IFP and the Personal Finance Society (PFS) as he feels these organisations better represent his views and concerns.