Over the last 12 months, your Board integrated our two new Board members (Jeremy Cole and Royden Shotter) into our governance processes and we have all worked effectively together implementing its business work plan.
Together with our Chief Executive and Administrator, our Board culture has grown stronger as we have all prospered in this positive environment.
“Partner for the future” is the TripleA Advisers Association’s ‘tagline’. Since introducing the tagline, along with our offerings to advisers, we have seen net membership increase by 15 advisers. We have 11 members now participating in our ‘Adviser Development Scholarship’ training and upskilling programme, since it launched in August 2018.
Financial performance has met our projected expectations:
- Membership subscription is lower by 50% as more groups have joined the TripleA;
- AMP’s subsidy is lower by 50%. This will cease entirely by 2020;
This has been offset by:
- A reduction in Board expenses generally, including sitting fees and the Chair’s remuneration being reduced by 57%;
- Administration expenses reduced by 17%.
The balance sheet as at 31 March 2019 is very healthy with total equity being $212,500. The Board has adopted some new practices: we only have two round-the-table meetings per year and use technology via two ZOOM video conference meetings.
With FSLAA and the ‘new Code of Conduct’ in place, advisers can from 4 November, now progress to applying for a financial advice provider (FAP) transitional licence, or can join a FAP entity. Please consider referring to our website: triplea.org.nz for clarity around competence, qualifications and licensing requirements.
Our Professional Indemnity (PI) insurer NZI, addressed at a Board meeting earlier this year that exposure to fire and general business, increasing litigation costs and the awareness by insurance companies to generate a profit in order to stay in business, contributed to our increase in PI premium this year for the first time in many years.
We have witnessed AMP being sold, then the sale not proceeding and now, perhaps, the sale is happening again subject to NZ Reserve Bank approval. The AMP sale process is having a dramatic effect on some long-standing members who are losing all the benefits they received from having a long-term relationship with AXA/AMP.
Also, familiar insurance company names are no longer with Sovereign as they are now rebranded as AIA, and before the year-end Onepath will be rebranded as Cigna. The ownership of these three life insurance companies now moves outside of Australasia.
Using a lean business model to deliver the best in adviser support services to our members, I would like to thank my fellow Board members for the diligent work they have done over the last 12 months.
Sheryl Glasse who has been a Board member for the last six years, is not standing for re-election this year. I’d like to take this opportunity to thank her on everyone’s behalf for her detail orientation approach to Board matters.
I am also not standing for re-election as your Board Chair as I believe a person should only consider being in this role for a two-year term, so one remains focused on ensuring the Board and CEO are effective in their tasks of setting and implementing the TripleA’s direction and work plan. Together, with representing the TripleA members’ aims, policies and needs to our service providers.
I conclude by thanking our CEO – Wayne Smith and Administrator – Christine Eves, for their continued efficient management of the TripleA and the highly valued support/guidance they have provided me over the last two years.
Malcolm Papworth AFA B.Com
Chair TripleA Advisers Association