Advisor associations boast of helping their members develop their businesses. Members of these associations feel that by being part of a community, they are able to improve their individual business and address problems.
Talking about the benefits of being an association member, Bharat Bagla, member of MF Network says, “Being part of a group that has many common interests is good. As an association, we are better equipped to tackle problems the fraternity faces. At MF Network, we have been able to help advisors with their operations by talking to the local or national head.”
Ketan Naniwadekar a member of Marathwada Independent Financial Advisors Association (MIFA) says, “As an association we are able to help our members stay ahead of the competition. We conduct workshops to help our members grow their business. We also give them timely advice on how to deal with the various regulatory changes the MF industry is seeing.”
Talking about the need to join an association, Ketan says, “By being part of a group, we are able to raise various issues with AMCs. While the voice of a lone IFA might go unheard, an association backing the IFA immediately catches the AMC’s attention.”
Being part of an association can also be of help in a crisis. “When a member of our association passed away recently, we helped groom his legal heir to handle the business. We also helped the boy get his ARN number and got the deceased member’s clients transferred to him,” says Sanjeev Chakraborty of Independent Consultant and Advisor Association (ICAA).
An IFA gets the moral support and backing of his peers in an association, Sanjeev says. “It is a good platform to discuss your experiences and learn from your peers. Also, by becoming a member, you can benefit from all the training and development programmes the association conducts for its members, at a subsidised rate,” he adds.
S.K. Bagaria, member of Ask Circle, however, feels that IFAs need to come together under a single banner in order to make an impact. “I feel that all IFAs need to show a united front and tackle the issues we face. For example, one of the major drawbacks of the distribution model is that the AMC fixes the commission structure. As a unified body, we will be able to ensure that the regulator fixes a unified rate of commission for all MFs. This way the IFA will not have any conflict of interest. In fact, this should be part of the RIA regulation so that there is no additional burden on clients while fair practice is ensured,” he says.
“I also feel that IFAs must be given a separate identity, defined by responsibilities and privileges. Only if we are given an identity outside the umbrella of AMCs will fair practice be ensured. All these major issues can only be addressed if all IFAs come under a unified front,” says the Ask Circle member.
