Futuro won't renew AIOFP membership

Result of Trio Capital relationship

By Vishal Teckchandani
Wed 04 Aug 2010

One of the AIOFP's largest dealer group members, Futuro Financial Services, is rumoured to have left the association.

One of the Association of Independently Owned Financial Planners' (AIOFP) biggest members, Futuro Financial Services, is rumoured to have left the body by not renewing its membership.

It is believed Futuro decided to leave the association because of concerns over the relationship between AIOFP and Trio Capital, after the failed fund manager's Australian financial services licence was frozen in December 2009.

In e-mails obtained by InvestorDaily, AIOFP executive director Peter Johnston had constantly voiced his support for Trio's former investment manager Shawn Richard.

"Shawn has been to hell and back many times, and for what it is worth, I believe he is innocent of any wrongdoing," Johnston said in an e-mail dated 24 January.

Futuro is still a member of the FPA and is also understood to be considering joining the Association of Financial Advisers (AFA).

"I haven't heard from [Futuro]," Johnston said yesterday.

"I understand they are in the process of being sold to an institution and I assume it may be [that they have left] because of that."

Johnston also said that while two other AIOFP members had left the group due to an association with Trio Capital, ten other groups had joined in recent months.

Futuro has around 100 financial advisers and around $2 billion in funds under management.

Richard underwent a public examination in the New South Wales Supreme Court last month, where he admitted under court privilege that Trio provided a loan to AIOFP member Seagrims and payments of over $800,000 to Tarrants, also an AIOFP member.

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