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Management Discussion & Analysis
The following is the management discussion and analysis of the financial condition and results for The Financial Advisors Association of Canada (TFAAC). The audited consolidated financial statements of TFAAC show current year revenues exceeding expenses by $400K that includes $2K gains from sale of investments and $90K net unrealized gains on investments, $174K loss from Advocis Broker Services Inc. and total assets of $18M.
Advocis Broker Services Inc. (ABS), the wholly owned insurance brokerage arm of TFAAC, reported a loss from operations of $174K. While ABS revenue growth slowed in 2021 (2%) compared to 2020 (14%) the brokerage required capital investment in both staff and technology infrastructure to support its continued growth. While 2021 wasn’t the year that we hoped, with the implementation of a new operating system, ABS has positioned itself for future financial success.
As the pandemic continued into 2021, events and programs continued to be delivered virtually for most of the year. The 40 local chapters across Canada continued to deliver high quality educational programs and community events virtually, with some chapters able to deliver small modified in-person events by end of year.
Membership revenue remained stable in 2021. But the ongoing challenges of the pandemic made replacement of revenue due to natural attrition, more difficult. Growing membership remains a top priority as the Association seeks new and innovative ways to engage advisors.
The demand for education programs was steady throughout the year. Costs for Advocis’ designation programs increased due to the escalating costs associated with online learning as well as capitalized expense for maintenance and updates to programs. With the anticipation of the launch of Ontario title protection for advisors and planners, TFAAC anticipates that the capital investment in these programs will provide future dividends to the Association’s bottom line.
Administration and governance expenses were down 5% compared to 2020. With ongoing pandemic restrictions, staff continued to work remotely supporting the various areas within the association. TFAAC continued its commitment to technology, implementing several updates and enhancements throughout the year. While not always easy, these upgrades have provided enhanced security, streamlined costs and provided an opportunity to reimagine processes to support our members and clients better in the future.
While the challenges of the ongoing pandemic continued, TFAAC continued to provide quality education, community and support to members and the industry during difficult times.
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