CUT THE BABBLE AND GET TOGETHER
Two heads can’t nod as one. This piece of folk wisdom explains why the proposed merger of the…
Two heads can’t nod as one. This piece of folk wisdom explains why the proposed merger of the 17,000-member International Association for Financial Planners, based in Atlanta, and the 12,500-member Institute of Certified Financial Planners, headquartered in Denver, makes eminent sense.
At a time when the issue of saving and investment by individuals is receiving increased attention, the financial planning industry needs to speak with one voice, not two, or three, or four or more, as is the current case.
Indeed, a case could be made for the National Association of Personal Financial Advisors and elements of the American Institute of Certified Public Accountants and the American Society of Chartered Life Underwriters and Chartered Financial Consultants to unite with the nation’s two largest financial planning organizations as well.
In Washington and in statehouses, a single voice representing large numbers and carrying a cohesive message translates into clout. In theory, the various groups could remain separate and still present a united front on any vital legislation or regulation. But if two heads can’t nod as one, how much more difficult is it for three, four or five?
If each group separately sends representatives to testify on some proposal, opponents will find the cracks in any apparently united front and drive wedges through them.
This can’t happen if representatives of only one organization representing all segments of the financial adviser community testify in support of a position hammered out in private before the testimony.
In addition, a single industry-wide organization would have more resources to keep track of federal and state initiatives, to enhance member services and to eliminate duplication of effort in everything from professional education to administrative services.
And a single industrywide organization would raise the visibility of the profession and enhance its status, much as the merger of a number of accounting-profession organizations into the AICPA enhanced th
e credibility and status of the accounting business.
Yes, competition is a good thing in the marketplace, including the marketplace of ideas. But that competition can occur within a single organization structured to encourage it, Procter & Gamble, Motorola and the 3M Co. being the classic examples. And their size allows them to press their best ideas to victory.
Given the cultural differences between the various groups active in financial planning accountants, lawyers, investment advisers, certified financial planners, insurance representatives and broker-related planners a successful merger will not be easy.
But for the good of the industry, and for the good of the clients, it makes sense.
Just do it.
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