The Australian Shareholders’ Association (ASA) and the Australian Investors’ Association (AIA) have announced they have commenced discussions with a view to amalgamating the two bodies by 2024.
An agreement was signed yesterday by the boards of both organisations with the details of the merger provided to their members and shareholders.
“At the core of this amalgamation proposal is the goal of establishing a powerful entity that can work for the benefit of current and future investors and provide a rounded approach to investors covering strengths from both the ASA and AIA,” the ASA board stated.
“To achieve this goal, it’s essential we have a smooth transition that maintains continuity of services to both organisations’ members, including membership transfer, ongoing member meetings and discussion groups, an expanded board and a future branding review of the organisation.”
Commenting on the development, the AIA board noted it was in recognition of the shifts in the financial sector.
“This is a pragmatic, forward-thinking step, driven by the objective of harnessing the collective strengths that will elevate financial literacy nationwide and safeguard the interests of individual investors,” it said.
Under the proposed amalgamation, the AIA will close and its members will be offered complimentary membership to the ASA for the term of their current arrangement.
It is expected the move will result in a larger pool of members for the new body, along with lower administrative costs and an improved collective skill set and level of expertise.
“ASA has been protecting the rights of individual investors for over 60 years and like the AIA, we have always been dedicated to financial literacy and investor education,” ASA chief executive Rachel Waterhouse said.
“So, we believe there is a pre-existing alignment between both organisations in terms of purpose, values and visions that will allow for a seamless amalgamation and see the entities emerge with a stronger voice on investor issues, as well as offering increased benefits to both organisations’ members.”
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