AIOFP reports membership increase, profit in FY22

The Association of Independently Owned Financial Professionals (AIOFP) said that, unlike its peers, it made a $52,503 profit and increased its member numbers by 19 per cent in the year to 30 June.

In a statement to ifa, executive director Peter Johnston, revealed that AIOFP had decided to reveal its results following an influx of member enquiries prompted by the recently published results of its “competitors”.

“We are pleased to inform you that the AIOFP made a $52,503 profit and increased our membership by 19 per cent for the period, an excellent outcome taking into account the overall market conditions,” Mr Johnston said.

“We attribute the results to always acting in the best interests of our members and their clients”.

Mr Johnston reported that AIOFP’s total number of AFS licensees was 123 at 30 June, representing around 4,000 authorised representatives, while its direct individual member count stood at 920.

Earlier this week, the Association of Financial Advisers (AFA) said it recorded a $2.2 million slump in revenue since 2018 to $2.8 million at the end of June.

This financial contraction reflected a decline in AFA member numbers, which over the last two financial years have rapidly dropped from 4,107 at the end of June 2020 to 3,664 on 30 June 2021, and most recently 3,292 on 30 June 2022.

At the end of financial year 2022, the AFA saw its net loss after income tax expand to $113,924 from $16,000 a year earlier.

The group explained that given its eroding balance sheet and having forecasted further pressures on stakeholders and downward trends within the advice sector, coupled with a long lead time to supplement the number of exiting advisers, the merger proposal with the Financial Planning Associations (FPA) emerged as a solution that promises to safeguard the long-term needs of the AFA members.

Earlier this month, the FPA revealed 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.

The AIOFP is expected to make its audited accounts available at its Annual General Meeting on 9 December.