The Financial Planning Association of Australia (FPA) revealed on Thursday it recorded a before-tax deficit of $1.2 million for the year ended 30 June, compared to a $1.3 million surplus a year earlier.
Its member numbers decreased by 7 per cent over the reviewed period, while accumulated members’ funds followed the downward trend to reach $11.6 million at the end of June from $12.8 million a year earlier.
Commenting on the significant decline to its member base, the FPA said “this drop is in line with expectations due to several factors which continue to impact the financial planning profession”, including industry reform, new FASEA education and professional standards, changes to business models and adviser numbers within a few large Australian Financial Services Licensees.
“These factors have caused a number of financial planners to leave the profession. This is also reflected by an approximate 14.4 per cent reduction in financial advisers listed on ASIC’s Financial Adviser Register (FAR) during 2021–22,” the group said.
Moreover, the FPA noted that it no longer runs the Professional Partner program, meaning only individual persons can be members of the FPA.
According to its annual report, the FPA welcomed 891 new members in the reporting period, but dips were recorded across most of its membership categories including CFP professionals, practitioner members — AFP, associates, allied professional affiliates, leave of absence affiliates, and student affiliates.
The only membership category to increase was retired affiliates, growing from 206 to 229 members.
In a letter from the CEO, Sarah Abood stressed that the last few years have seen “significant change” for the financial planning profession, and “not always for the better”.
“Overwhelmingly, members tell me that strong advocacy for the positive changes we need to see is their number one priority — this area remains our number one priority as an association,” Ms Abood said.
“Our approach this year has been to find areas where the many disparate stakeholders across financial services agree, and to spotlight and amplify these areas of agreement with policymakers and regulators.”
Looking to the future, Ms Abood said: “We need more great financial planners in this country and many of our longer-term initiatives are focused on this, retaining and supporting our existing practitioners while growing the numbers of financial planning students, and helping them through the new Professional Year”.
think it’s a dying organization.
i think simply advisers want their interest represented, a voice opposite to the broader stakeholders.
Members are finally waking up that it’s the financial planning association and not the financial planners association. They’re focused on representing the industry- that’s being all things to all people but yet the needs of AwareSuper are different to Planners and for too long they’ve been listening to compliance heads, managers of large super funds and banks and not to members. It’s time Advisers just give up and leave. It’s a cultural problem that won’t be solved by a merger. Doing the same thing year after year how is that working out for you?
The merger of FPA and AFA is for the benefit of FPA/AFA exec and staff, not for the benefit of advisers.
Could not agree more, it is all about saving their jobs. Both the AFA & FPA sold out the Advisers that they are actually suppose to represent, and now the result of the sell out their are less Advisers and even less are remaining members of either organisations. They both told us the reforms would save the profession back in 2015, well seven years on over half of the advisers have left and many of the ones remaining are questioning whether or not they should leave as well. Ms Abood stated in the webinar to AFA members yesterday that the new “Merged” entity would continue to put the “Consumers” best Interests first, well aren’t they were suppose to be representing the “Advisers” who pay the membership fees which pay their wages, remember no advisers no association its a very simple equation. I will be voting against the merger and if it does occur, then I will vote with my feet and cancel my membership with the AFA.
“Overwhelmingly members tell me that strong advocacy for the positive changes we need to see is their number one priority – this area remains our number one priority as an association,” Ms Abood said.
“Our approach this year has been to find areas where the many disparate stakeholders across financial services agree, and to spotlight and amplify these areas of agreement with policy makers and regulators.”
Choose one – can’t have both.