Advice networks have reiterated the need for a strong trade body following Openwork’s decision to leave the Association of Professional Financial Advisers.
Openwork, which joined Apfa in 2013, said it no longer required membership of a trade body to engage with regulators and policymakers.
But its decision was met with strong words from other networks and support services groups.
Matt Timmins, joint managing director of the SimplyBiz Group, said: “I believe that our industry is best represented by a single voice, and I think Openwork have taken a rather self-centred approach here.
“The long-term health and wellbeing of our industry is better represented by an independent and well-funded industry body and not by large firms acting on their own, with their own agenda.
“Furthermore, I believe Apfa is best placed to deliver our collective voice; they represent a good cross section of advisers and act for the profession as a whole and not just their own commercial objectives.”
Tenet chief executive Martin Greenwood said: “While the news that Openwork has decided it no longer requires trade body representation is disappointing, Apfa continues to fulfil an important role in representing advisers and providing a collective voice for the profession.
“As part of the Apfa council, Tenet is committed to an on-going relationship with its trade body and while it is healthy for groups to pursue their own agendas, it is important that the industry is also represented by a united voice in order to engage in serious debate with the regulator and government.”
A spokesman for Intrinsic said: “Intrinsic remains committed to Apfa. We believe it is important the industry has a strong and representative trade body and we will therefore continue to support Apfa.”
Meanwhile a spokesman for 2Plan said it remains committed to Apfa.
Openwork’s decision comes at a time when Sesame’s closure has already posed questions for Apfa.
Last month Alan Lakey, a former member of Apfa’s council, said the trade body faces the “most serious threat” to its existence since it was formed, following Sesame’s decision to close its wealth advice network.
He said this was because the overwhelming majority of its members are part of networks. Apfa could lose revenue if Sesame’s advisers go directly authorised and don’t buck the trend by staying in the trade body, he said.
As part of Openwork’s move, its chief executive Mark Duckworth will step down from the Apfa board.
Mr Duckworth said: “Our size, scale and status, offering both restricted and independent advice through the safety of an AR model, means we differ from many other advice businesses in terms of the level of direct engagement we have with the regulator and policymakers.
“Having reviewed our position in this respect, we have concluded that we no longer require trade body representation and have accordingly resigned our membership of Apfa.
“We would like to place on record our gratitude to Chris Hannant and Apfa for the work they have done in recent years and we wish the organisation all the very best for the future.”
True Potential declined to comment.
Adviser view
Gordon Bowden, a financial adviser with Buckinghamshire-based Quainton Hills Financial Planning, said: “I am not a member of Apfa because I don’t see what benefits membership would bring.
“There is a need for a decent trade body but there isn’t one.”
