AIFA posts £200k deficit after 'challenging' year

The Association of Independent Financial Advisers (AIFA) posted a deficit approaching £200,000 in the 12 months to 30 June 2011, despite putting cost cutting measures in place.

The organisation recorded an operating deficit of £194,419 in 2010/11, compared to the £14,919 surplus it posted in 2009/10.

Its turnover was down from £1.9m to £1.6m, with income from subscriptions down from £1.4m to £1.2m.

However, it did manage to slightly slim down its expenses, from £1.84m to £1.82m, with marketing and distribution being the main area of savings.

Stephen Gay, managing director of AIFA, said: "We have had a challenging year as the changes in the market increase the demand for representation whilst the strain on the advisory community serves to test our own economic model.

"It has required us to think seriously about the direction of our association through a comprehensive strategic review, and how we will be able to develop an organisation that works more closely with its members and achieves greater influence with regulators and policymakers."

In July, AIFA revealed the outcome of its strategic review and announced it would accept 'restricted' advisers post RDR.