Aifa has posted an operating deficit of £194,419 for the year to June 30, down from a surplus of £14,919 for 2009/10.
Results published on the Aifa website show that turnover at the trade body is down 12 per cent from £1,853,393 to £1,629,319.
Aifa is currently considering introducing higher fees for networks to bring their contribution more into line with the fees paid by directly authorised firms as part of an ongoing strategic review of the organisation which has already seen it extend its membership to restricted advisers.
Director general Stephen Gay (pictured) said last month the appetite among advisers to fund the trade body was “patchy”, and that Aifa would either need to increase its funding or reduce the scope of what it does.
Aifa’s results show that office costs are up 7 per cent from £281,456 to £300,119, while marketing and distribution spend has been slashed by over half from £90,318 to £38,799.
Over the year Aifa’s total reserves have fallen from minus £47,556 to minus £194,781.
Annual subscriptions have fallen by 14 per cent from £1,393,680 to £1,202,984.
Staff wages for the 15 employees have remained relatively flat at £752,988 while pension costs have fallen 27 per cent from £88,145 to £64,263.
Directors’ pay has been cut by 33 per cent from £205,000 in 2009/10 to £137,310 for 2010/11.
The cost of events and research projects has risen 14 per cent from £290,766 to £332,808.
European costs associated with membership of BIPAR, the European Federation of Insurance Intermediaries, have more than doubled from £14,552 to £30,129.
Total spending is down by less than 1 per cent at £1,824,175, compared to £1,838,859 the previous year.
Gay says: “From an economic perspective it has been a challenging year for the advice profession. Aifa is not immune to this. We have found that some members have ceased trading or intend to do so, whilst others have merged. The association reported a loss in the year to June 2011 and has been restructuring this year in order to correct this position and to ensure that it is equipped to represent the interests of our members.”