A BRIEF OVERVIEW by huangyuarong

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									                                A BRIEF OVERVIEW: FEBRUARY 2012



The National Association of Independent Financial Advisors was formed in early 2011 to act as an
activist organisation exclusively for and on behalf of the independent financial advisor. By activism
we mean being active in the identification and combatting of instances where our members’
individual rights are compromised. By combatting we mean everything from discussion and
negotiation to legal action and political activity if necessary. We have given our members the
undertaking that we will at all times act rationally, responsibly and based on the best information
available. We have identified four main causes of the current threat to the IFA, being:

    -   The manner in which regulation is sometimes promulgated and enforced;
    -   The ever-more complex relationship with product providers;
    -   The lack of a clear and properly communicated value proposition which sets the IFA apart as
        a desirable business partner; and
    -   Apathy.

Because we are not hamstrung by loyalties to product providers nor are we stymied by conflicting
interests of different categories of members, we were able to achieve much in the past year:

We:

    -   Petitioned the Minister of finance for the establishment of a regulatory oversight
        committee;
    -   Launched and successfully completed an application to the Equality court in respect of the
        provision of the Regulatory exams in Afrikaans;
    -   Conducted a workshop with product providers and developed from there, a road map for
        the IFA;
    -   Completed a country-wide road show providing feedback and sharing our road map with our
        members; and
    -   Gained recognition from the FSB as a representative body.

Our aim for the forthcoming year is to:

    -   Continue our activism with regards to aspects of the regulatory exam that we are unhappy
        about;
    -   Participate fully in the discussion on the definition of intermediary services and related
        remuneration aspects;
    -   Commission an investigation into the value of IFA business as opposed to other distribution
        channels, as part of a greater strategy to;
    -   Fully develop a universally accepted value proposition applicable to consumers, product
        providers and regulators in respect of the separate profession of the IFA;
    -   Become known as a consumer-oriented body who, by serving our members well, also serve
        the communities in which they work; and
    -   Establish a fully-functioning regional infrastructure including regional representation on our
        board.



We fully accept that some of our actions will continue to be criticised by the uninformed, simply
because is it easier to criticise than to investigate. This type of criticism will strengthen our resolve
rather than detract from it.



We accept that there will be many instances of fraction between us and the regulators. This is so
because there is a difference in the fundamental philosophy of government and ourselves. We stand
for the supremacy of the principle of individual right which clashes with the principle of utility which
dominates the regulatory approach. We will continue to pursue strategies that mitigate these
differences for the benefit of our members and consumers.



Our association is not a comfortable old boys club where we just talk about things. We think
carefully and then act! It will not always be comfortable to be in our shoes, but we go to bed every
night, proud in knowing that we have played an active part in determining our own future. We have
a right and an obligation as responsible citizens of South Africa to question and help mould our
society. To do anything less means abdication and with that you lose the right to complain later on.



Become part of our movement and share responsibility for our future. Join NAIFA now!

www.naifa.co.za



The NAIFA Board

27 February 2012

								
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