How the AFA spends its cash

Around 12% of the Association of Financial Advisers (AFA) $3 million worth of expenditures in FY21 has been on advocacy of financial advice, as the association continues to respond to Royal Commission regulatory reforms.

However, the proportion likely did not represent its full commitment to advocacy alone, as other expenditures like member communications and events also played a part in industry advocacy and engagement.

This was answering a question on notice as NSW Liberal backbencher, Jason Falinski, asked how the organisation had spent its money.

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“I’ll fess up that I want to compare it to some of the advocates in this space who are in receipt of tens of millions of dollars of public funding,” Falinski said.

Marketing and member communication was the activity with this highest expenditure at $730,970, followed by member services and systems ($649,175), conference and events ($641,329), governance and administration ($438,229), and advocacy for financial advice ($387,885).

Phil Anderson, general manager – policy and professionalism, said: “The AFA is one of the most active advocates for the advice sector and profession and it undertakes this vital role without any public funding.

“Our funding comes from membership fees, along with revenue from our events and other services.

“As a profession as a professional body for advisors, our role is to support them and the financial services sector to provide professional advice to Australians across the economic spectrum.”

Anderson said the AFA’s goal was to assist as many Australians as possible to achieve financial security for them and their families with quality financial advice.

“We are a tireless advocate for policy settings that enable the establishment of a fair and equitable regulatory regime, the protects consumers at a reasonable cost,” Anderson said.

“The extensive range of overwhelming regulatory reform measures triggered by the Hayne Royal Commission final report has made this work a huge undertaking for a small organisation such as the AFA.

“At the same time, we remain committed to developing and supporting financial advisers as a profession, and the AFA offers conferences and other events to share best practice and provide other professional development opportunities for our members.”

AFA expenditure for FY21

Source: AFA




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Disappointing that only 12% of expenses is allocated to advocacy, when "marketing & communication" is the largest component. One assumes the FPA is similar.

Unfortunately these organisations seem more focused on telling people what a great job they're doing, than actually doing a great job.

the greatest scam in Australia (and globally) is an association. let's start one. The Royal Chartered Association of Certified Financial Planners of Australasia (RCACFPA)... sounds impressive, doesn't it? let's add some Latin words. Ancora Imparo. (still, I am learning, that's what Michelangelo is believed to have said at 87 when he was already considered a genius) (impressed yet) don't worry more to come....

there you go, I gave you the name and Latin words, all you need is a crest now. I suggest you add a golden bald eagle (see how the story is coming full circle)

CEO, salary $650,000 plus super at 17% plus bonus

CFO, Salary $480,000 plus super at 17% plus bonus

CTO, Salary $450,000 plus super at 17% plus bonus

CIO, Salary $430,000 plus super at 17% plus bonus

suckers ? the 15,000 remaining registered advisers in Australia at year's end.

annual membership fee $895, plus a $250 marketing levy, plus a $750 association bonus pool for you know executives (they need their own washbasin with a butler)

what do you get? the highest designation in financial planning and the use of the following designatory letters:

Associates - ARCACFPA

Fellows - FRCACFPA

I'll have you know they are the longest letters you can have after your name of any designation in Australia, even longer than FRACGP (that's what GP's use)

there you go, any takers?

so... you arent a member then?

This is not a bad scam actually.

Revenue

15,000 x $1,895 (895 + 250 + 750) = $28,000,000

Less: Operating Expenses
say 60% (using comm bank's operational cost ratio (17,000,000)

=Operating Profit Before Income Tax

kaching !!! man I want in it's a big-time, do nothing, just drink alcohol, post a few times on Linkedin, get drunk and hire your mates (wink wink, jobs for the boys, GRRRR) bonus time oh yeah baby.

I want into the Royal Chartered Association of Certified Financial Planners Association of Australasia and Fiji, and Indonesia (don't worry I'll expand it ) and all of the pacific islands oh yeah baby.

$650k Aud plus 17% super, i am in!!! as CEO.

p.s. I am already a cfp and mfin plan and fasea passed so I should be a shoo-in.

p.ss drunkenness yeah Australia land of drunks and associations

GRRR straya, associations, land of drunks. pure profit KAChINg! KACHING!

property, and debt GRRR lets' get me more debt GRRR drunken

hi, I would like to be either :

a. porn star

b. male prostitute

what do you think is more feasible for me given, I am very good looking and have a hot bod. plus I have passed the fasea exam and am a cfp.

do you think chicks (or others) would dig it if I said I was a fasea passed cfp designation holder? (or is this just dopey to mention), just wondering what my charge out rates should start at $250 p/h?

thanks, everybody.

cheers,

xoxo

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