On 1 January 2018 CFA Society Netherlands and VBA Investment Professionals (VBA beleggingsprofessionals) (VBA) merged into one: CFA Society VBA Netherlands.
Prior to that, both were well-established professional associations, recognized throughout the investment industry. Yet both entities wanted to achieve more; to offer more to their members and to have a greater, more positive, impact. Today, at 2,300 members strong, CFA Society VBA Netherlands has become one of the largest societies in EMEA. The staff of this Society wants to tell you its story . . .
What was the rationale behind pursuing this action?
With over €1300 billion in pension fund assets under management, the Netherlands is one of the largest markets in Europe. But the Dutch financial sector is highly concentrated and competitive. It is too small for two such organizations to realize their separate ambitions. Essentially, the merger served to help both organizations reach their goals of member value, growth, and impact more quickly. For example:
- Member Value and Impact: CFA Society VBA Netherlands can now offer more enhanced services to its members. Our larger size increases our visibility and influence. Together we can do a better job of setting standards, raising ethics, improving competence, and sharing knowledge, all of which contributes to the advancement and stability of the investment community in the Netherlands. This, in turn, increases member value in the new society.
- Demographics: The two societies had roughly the same membership base and the same mission. We already collaborated on several events and projects. Our members had similar professional profiles and worked side-by-side. It was the divergence of two key demographics that made the merger so complementary — CFA Society Netherlands was a young, international, and growing organization, while VBA had a stable, locally-focused, and maturing group of members well-established in the upper echelons of the industry.
What were the perceived benefits and risks of the merger?
The objective of the merger was to advance the goals of both associations, while simultaneously boosting benefits for members. Members now have more events and CE courses, a bigger network, more local and international content, more opportunities to participate, and a bigger voice in the industry.
As with any merger, striking the right balance between the two parties is key. It was important for our members to understand the rationale and added value of the merger, while recognizing that cultural differences do exist and need to be addressed. The board took a proactive approach to managing the cultural transition of the new association by highlighting the shared values of the two organizations as a basis for our future mission, vision, and strategy. Cultural integration continues to be a priority for the board.
Were Society members concerned about the merger?
From the CFA Society Netherlands side, there were not many concerns. CFA Institute charterholders are young and confident in their futures, although a few did not see the need for a merger given the steady growth of the designation.
VBA members had a strong identification with their brand. They were proud of their accomplishments and that of their 55-year old institution. Some were concerned that a blending of VBA into the CFA network would cause a loss of recognition of their professional designation, along with their independence. However, more and more VBA members became enthusiastic about the potential member benefits as time went on.
In the end, most members on both sides were in favor of the merger, understanding that they had much in common with each other in terms of profession, interests, and values, and that they had more to gain as a single organization than as two stand-alone entities.
Did the concerns come to fruition or did the merger alleviate them?
Initial feedback is generally positive. Members like seeing new faces at events. There is more diversity, a better balance, and higher attendance. VBA members are taking an interest in the new content available to them, sometimes at a greater pace than the original CFA Society Netherlands members. CFA charterholders, in turn, are joining new committees and bringing new energy and ideas. These successes lead to more enthusiasm and openness amongst members and the spiral continues upward.
Of course, there are setbacks. Former VBA members have been confronted with a more cumbersome administrative process than what they were used to, causing a high level of frustration.
Overall, what effect has the merger had on the Society?
As a combined society, we have scored our first “win.” In Europe, we are one of the few societies to have proposed and received approval for our local designations (CFA and RBA) to receive entrance exam waivers from the local regulator under MiFID II’s new guidelines. This proposal was drafted and submitted by our newly minted CFA Society VBA Netherlands. Our combined voice had more impact and represented more industry participants than had we gone it alone. We anticipate that our next proposal to the regulator, to accredit our education/events platform for purposes of MiFID II continuing education requirements, will have a similar result.
From a society management perspective, what were some of the more practical issues you had to deal with?
We now have three FTE support staff for 2300 members. The pre-existing staff has formed one enthusiastic experienced team with complementary skills. Yet, while our members are experiencing the benefits, the back-office is still struggling to stay ahead of the game. Our databases, websites, event, and membership platforms are all taking much longer to consolidate than expected. This is nothing new or unexpected in a merger. As we are one of the first CFA Institute societies to have completed a “merger of equals,” there were no templates or checklists to refer to. We had to make it up as we went along. We have all learned a lot from this exercise and there is still much to be done.
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