CompaniesOct 22 2014

Apfa posts 75% drop in operating profit

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The Association of Professional Financial Advisers has seen its operating profit plummet by 75 per cent to less than £30,000 in the year ending 30 June 2014, its most recent accounts have revealed.

Its operating profit fell to £29,118 compared to £117,280 in the previous year, as turnover fell from £977,074 to £797,842.

The results meant the trade body delivered an after-tax surplus of £29,253, which Apfa director genera Chris Hannant described as “a pleasing performance in what continues to be a challenging climate for the advice profession, post the introduction of the RDR.”

Following a rebrand in September 2012, Apfa, previously the Association of IFAs, took the decision to allow restricted advisers into the organisation for the first time following the changes wrought by the Retail Distribution Review.

Mr Hannant said that Apfa has generated a surplus for the financial year through a continued focus on member recruitment and cost control.

However, he emphasised that, “as a not-for-profit organisation”, Apfa’s objective is “not to generate a large surplus”.

Mr Hannant said: “Our aim is to ensure we have the resources at hand to lobby effectively on behalf of our members, and any surplus we do generate goes towards helping us achieve that.

“Apfa has sought to concentrate on its core lobbying activities, with less focus on supplementary member services supported by product providers. As a result, a greater proportion of our funding comes from member subscriptions; a direction in which we intend to continue.

“Developments in legislation, including the Care Bill and the changes to retirement income rules, mean that there are many opportunities for advisers to engage with new and existing clients, and to play a vital role in the success of the policies.

He added: “As the sole representative body for the financial advice profession, we will work closely with members to ensure their voice is heard and that they have a regulatory environment in which they can prosper.”