FPA member numbers fall

The Financial Planning Association (FPA) has lost numbers in both its principal and general membership bases over the past financial year.

According to the FPA’s annual report, the number of the association’s general members was down 12 per cent over the year, from 3,324 at 30 June 2008 to 2,927 at 30 June 2009.

The association’s principal member numbers were also down by 13 per cent to 468 in June this year, from 539 in June last year.

The group’s annual report said the net loss of principal members was “partly as a result of ongoing consolidation in the market”, while exit interviews with departing general members found “most … who do not renew are leaving the industry or changing roles”.

On a positive note, the FPA’s number of Certified Financial Planner (CFP) practitioners was up by 3 per cent to 5,736 in June 2009, while student member numbers rose from 86 to 190.

Meanwhile, the expenses of running the CFP trademark increased, while reduced participation in the program meant lower financial contributions from members. Continuing education revenue, however, was maintained at last year’s levels.

The FPA reported what it described as a small operating surplus of $214,538 after tax, with reserves from accumulated members’ funds increasing to $6,359,715.

The FPA’s national conference, being held in Melbourne next week, achieved a slightly lower than projected surplus of $547,490.

Over the 2008/2009 financial year the FPA closed 104 investigations into members’ behaviour as part of its disciplinary role, and began 111 new investigations. The FPA’s investigations resulted in three expulsions from its membership.