APFA Report and Accounts 2015-2016

Annual Report & Accounts 2015-2016

APFA 46 Queen Anne’s Gate London SW1H 9AP

Annual Report & Accounts 2015-2016

Contents Company information Chairman's statement Review of the year Appendix I

Association of Professional Financial Advisers Annual Report for the year ended 30 June 2016

Appendix II

APFA Services Limited Directors Report and Financial Statements for the year ended 30 June 2016

Annual Report & Accounts 2015-2016

Company information Chair

Registered auditors

The Rt Hon Lord Deben

Rickard Luckin Limited Aquila House

Deputy Chair

Waterloo Lane

G Bottriell

Chelmsford Essex

Directors

CM1 1BN

W W Dobbin S C Gazard

Solicitors

M J Greenwood

Beachcroft Wansbroughs

C Hannant

100 Fetter Lane

T J Harvey

London

J S Hepworth

EC4A 1BN

N Liversidge A J F Morley

Business address

J R Porteus

46 Queen Anne’s Gate

M J Streatfield

London

M L Timmins

SW1H 9AP

J D White Registered office Secretary

100 Fetter Lane

Beach Secretaries Limited

London

100 Fetter Lane

EC4A 1BN

London EC4A 1BN

Registered number 03779289

Association of Professional Financial Advisers (A company limited by guarantee) Incorporated in England 24 May 1999

Annual Report & Accounts 2015-2016

Chairman’s statement It has been quite a year for advisers and the UK as a whole. The Financial Advice Market Review (FAMR) was recognition from government of the need for everyone to have access to financial advice. The government’s tinkering with the pensions market continued, though thankfully now the government seems to be backing away from some of these. Then there was the EU referendum and an effective change of government, despite there being no election. At the time of writing, the UK’s future relationship with the EU is uncertain. Despite all this, advisers continue to provide a high quality service to their clients, the number of advisers has grown slightly and business across the profession appears to be improving. APFA has worked hard to represent financial advisers and pursue our goal of providing a single united voice for the sector.

The result of the EU referendum on June 23 will dominate the government’s policy programme for the foreseeable future. It may affect advisers with clients in the rest of the EU that currently have passporting rights. It may open an opportunity for the FCA to regulate differently, although I am not too optimistic given the FCA was a driving force behind much of recent EU regulation. APFA has been active in getting to know the relevant ministers and I’m glad to see we have the City minister as our keynote speaker at our Annual Dinner again.

The FAMR was the most significant issue in the first half of the year. I very much welcome the government’s belated recognition of the importance of financial advice. The APFA response focused on the need for reform of the liabilities that advisers face if the cost of advice is to be reduced and broaden access to financial

advice. The conclusions were for the most part disappointing (I wonder whether the looming referendum dampened the government’s appetite for more radical steps), but it did commit the FCA to an overhaul of financing the FSCS with a remit to make the funding fairer and more sustainable for financial advice. If we are right and the proposals will not increase access to advice, the review of the effectiveness of the measures in 2019 will be important.

The review of FSCS funding has been our main focus for the second half of the year.

APFA has had extensive discussion with the FCA team and input to their policy development process and we are encouraged by the ideas being considered. If they are followed through, I would expect there to be a significant reduction on the burden for the FSCS on advisers when they are implemented.

Over the past year we have seen the impact of the government's reform of the use of pension assets at retirement.

Advisers have seen increased demand for help with pensions, although more could be done to promote use of Pension Wise for which take up has been poor. People by and large seem to be adapting and making reasonable decisions with their pensions. APFA believes in the need for a period of stability if we are to make sense of how the already significant reforms are working and we are glad to see the new government stepping back from some of the proposals.

Settling on one organisation to deliver public financial guidance (rather than two) and abandoning plans for a market for secondary annuities are welcome.

Annual Report & Accounts 2015-2016 The ongoing development of EU legislation has been a challenge as the detail is worked out for MiFID II, the PRIIPS regulation and Insurance Distribution Directive. The FCA will be implementing these measures so it is important that APFA and advisers engage to minimise the potential burdens. It is probable that the FCA will retain the bulk of the measures even if the UK decides not to seek access to the single market.

For APFA as an organisation the year has been a steady one. We continued to place emphasis on member recruitment and aim to grow the membership to represent all advisers.

I would like to thank Chris and the team for all their efforts over the past year. We

are making progress in representing advisers and promoting a positive policy agenda to build a better framework for financial advice. I am very proud of all that the APFA team has achieved over the past year. I am confident we are well positioned to tackle the challenges of the coming year and provide the necessary voice and leadership for the financial advice sector

.

The Rt Hon John Gummer, Lord Deben, Chairman, November 2016

Annual Report & Accounts 2015-2016

Review of the year 2016 has been, like 2015, a year of significant upheaval to the political, policy and regulatory landscapes for advisers, with what looks like further change ahead.

This year, advice firms have had to deal with the Financial Advice Market Review (FAMR) and its recommendations, the continuing evolution of the retirement savings market, EU-level regulation in the form of MiFID II and PRIIPs, to name a few developments. The adviser market has changed a good deal since RDR in 2012 and APFA has accordingly sought to adapt in response.

In the wake of the UK vote to leave the EU, we also have our second government in as many years. The May administration already looks very different to Cameron’s 2015-2016 team both in terms of its approach and its priorities. Advisers must engage decisively with the new personalities, politics and policies as well as continue its longer-term engagement with government departments and the regulators. This is particularly important as the FAMR recommendations are implemented; with government and regulatory resources directed towards negotiating Brexit, pressure from industry stakeholders must be used to ensure that boosting access to professional financial help remains a priority.

Our Financial Professionals’ Forum will provide an excellent opportunity both for us to engage directly with members and hear their views on the issues which are important to them, but also for members to engage directly with representatives from FOS, the FCA and HM Treasury as well as industry experts.

Issue-specific member engagement also continues to gain momentum in the form of Working Groups on Smarter Consumer

Communications, the FOS and the longstop, as well as an ever-growing Policy Consultative group. Our Annual Dinner, with a keynote speech from the Economic Secretary to HM Treasury, presents another opportunity for members to meet senior regulators, politicians and industry thought-leaders.

Representing Advisers By far the biggest policy news for advisers in 2015 was FAMR. Having lobbied policymakers for many years on the need for a structured, wide-ranging approach to boosting access to advice, we were pleased to see several mentions to APFA’s research on client turnaway and the costs of regulation in the final report.

We also welcomed the commitment to review the case for a longstop in the initial Review. However, with the exception of the commitment to review the FSCS funding, we were disappointed by the lack of fundamental reform recommended by the final report and will continue to make the case for a fair cost and liability burden for advisers.

The cost of regulation remains a key concern for advisers and was an important aspect of the cost and accessibility of advice in FAMR. APFA believes that more must be done to make it easier for advisers to do business and look after their clients, particularly in a landscape where consumers need access to professional financial help more than ever.

This is why we have continued to press HM Treasury, influential MPs such as those on the Treasury Select Committee, the FCA, the FSCS and FOS to take steps to reduce both the direct and indirect costs of regulation.

Annual Report & Accounts 2015-2016 We have already been heavily involved in speaking to policymakers and politicians on the Review of the FSCS levy approach and will continue to push for fundamental change and a reduction in the seemingly ever-increasing fee burden placed upon advisers. We were also pleased to see that the FCA committed to Sustainable Regulation as part of its 2015/16 Business Plan; at long last there seems to be a positive commitment to try to reduce the plethora of rules and regulations and we have already started feeding into the process of reviewing and redrafting unnecessary regulations. 2016 also saw the third APFA annual Costs of Regulations survey; this has proved a vital tool in lobbying politicians and regulators and we will continue to refine and re-run it in future years.

The changing pensions and retirement savings landscape has presented significant opportunities but also challenges for the adviser market. APFA has continued to express our and members’ concerns about the viability of a secondary market for annuities and were pleased when the government recently announced that they would shelve plans.

We have also engaged with all levels of government on issues such as autoenrolment, the pensions advice allowance, the FCA’s Review of Retirement Outcomes and the Lifetime ISA. It is important for advisers and their clients that, after a period of intensive change, there is now a breathing space for them to get to grips with the new ways in which people can save for their retirement.

At the European level, we continue to work through and with our European trade association, BIPAR, as well as putting pressure on the FCA to better represent the interests of the UK financial advice sector in its own negotiations at the EU level. This will be particularly important in

the wake of Brexit as we seek to protect advisers from any adverse impact. APFA continues to call for a common sense approach to telephone recording under MiFID II and is working to present alternative solutions to the FCA. Regarding PRIIPs, at the time of writing there has been no word from the European Commission as to whether they continue with the current timetable after the European Parliament’s vote. We will monitor the situation carefully and keep advisers informed of developments.

The Business Our mission remains to promote the interests of financial advisers across the country and financial advice delivered in the interests of the client. Our finances have significantly improved over previous years and we continue to manage our resources as effectively as possible, while also working to bring in more members and improve our revenue stream. This ensures we can continue to deliver upon our members’ objectives and priorities.

We would like to express our sincere thanks to our members and associates for their support over the last year. From taking the time to complete our Costs of Regulation survey, to feeding in views on policy consultations, as well as attending our events and boosting our engagement efforts with policymakers, APFA members’ willingness to engage is one of our strongest assets.

We are particularly grateful to the Chairman, our Council and other APFA Committees for their time and efforts. The APFA team continues to work hard on members’ behalf and will look to build upon the last year’s successes in championing the need for a strong, thriving and varied financial advice sector in 2017 and beyond.

Chris Hannant, Director General, November 2015

Appendix I

Company Registration No. (England and Wales)

ASSOCIATION OF PROFESSIONAL FINANCIAL ADVISERS ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016

ASSOCIATION OF PROFESSIONAL FINANCIAL ADVISERS COMPANY INFORMATION

Directors

Lord J S Deben G Bottriell N Liversidge MJ Streatfield WW Dobbin MJ Greenwood C Hannant SC Gazard AJ F Morley JD White ML Timmins Ms JS Hepworth TJ Harvey JR Porteous

Secretary

Beach Secretaries Limited

Company number

03779289

Registered office

100 Fetter Lane London EC4A 1BN

Auditor

Rickard Luckin Limited Aquila House Waterloo Lane Chelmsford Essex CM1 1BN

Business address

46 Queen Anne's Gate London SW1H 9AP

ASSOCIATION OF PROFESSIONAL FINANCIAL ADVISERS CONTENTS

Page Directors' report

1

Directors' responsibilities statement

2

Independent auditor's report

3-4

Profit and loss account

5

Statement of comprehensive income

6

Group balance sheet

7

Company balance sheet

8

Group statement of changes in equity

9

Company statement of changes in equity

10

Group statement of cash flows

11

Notes to the financial statements

12 - 22

ASSOCIATION OF PROFESSIONAL FINANCIAL ADVISERS DIRECTORS' REPORT FOR THE YEAR ENDED 30 JUNE 2016 The directors present their annual report and financial statements for the year ended 30 June 2016.

Principal activities The principal activity of both The Association of Professional Financial Advisers and APFA Services Limited continued to be that of promoting the interests of financial advisers.

Directors The directors who held office during the year and up to the date of signature of the financial statements were as follows: Lord J S Deben G Bottriell N Liversidge MJ Streatfield WW Dobbin MJ Greenwood C Hannant SC Gazard AJ F Morley JD White ML Timmins Ms JS Hepworth TJ Harvey JR Porteous Results and dividends The results for the year are set out on page 5.

Auditor Rickard Luckin Limited were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of disclosure to auditor So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company and group is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company and group is aware of that information.

On behalf of the board

..............................

Lord J S Deben Director .........................

-1-

ASSOCIATION OF PROFESSIONAL FINANCIAL ADVISERS DIRECTORS' RESPONSIBILITIES STATEMENT FOR THE YEAR ENDED 30 JUNE 2016 The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: Ÿ select suitable accounting policies and then apply them consistently; Ÿ make judgements and accounting estimates that are reasonable and prudent; Ÿ state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; Ÿ prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

-2-

ASSOCIATION OF PROFESSIONAL FINANCIAL ADVISERS INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ASSOCIATION OF PROFESSIONAL FINANCIAL ADVISERS We have audited the financial statements of Association of Professional Financial Advisers for the year ended 30 June 2016 set out on pages 5 to 22. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of directors and auditor As explained more fully in the Directors' Responsibilities Statement set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the group's and the parent company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the annual report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements In our opinion the financial statements: Ÿ give a true and fair view of the state of the group's and the parent company's affairs as at 30 June 2016 and of its profit for the year then ended; Ÿ have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and Ÿ have been prepared in accordance with the requirements of the Companies Act 2006.

Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

-3-

ASSOCIATION OF PROFESSIONAL FINANCIAL ADVISERS INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF ASSOCIATION OF PROFESSIONAL FINANCIAL ADVISERS Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: 타 adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or 타 the parent company financial statements are not in agreement with the accounting records and returns; or 타 certain disclosures of directors' remuneration specified by law are not made; or 타 we have not received all the information and explanations we require for our audit.

Caroline Peters (Senior Statutory Auditor) for and on behalf of Rickard Luckin Limited

.........................

Chartered Accountants Statutory Auditor

Aquila House Waterloo Lane Chelmsford Essex CM1 1BN

-4-

ASSOCIATION OF PROFESSIONAL FINANCIAL ADVISERS GROUP PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 30 JUNE 2016

Notes Turnover Cost of sales

3

Gross profit Administrative expenses

2016 £

2015 £

566,802 (18,567)

722,041 (31,275)

548,235

690,766

(427,981)

(720,846) (30,080)

Operating profit/(loss)

4

120,254

Taxation

8

6,663

Profit/(loss) for the financial year

17

126,917

(30,080)

The profit and loss account has been prepared on the basis that all operations are continuing operations.

-5-

ASSOCIATION OF PROFESSIONAL FINANCIAL ADVISERS GROUP STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2016 2016 £ Profit/(loss) for the year

126,917

Other comprehensive income

-

Total comprehensive income for the year

126,917

Total comprehensive income for the year is all attributable to the parent company.

-6-

2015 £ (30,080) (30,080)

ASSOCIATION OF PROFESSIONAL FINANCIAL ADVISERS GROUP BALANCE SHEET AS AT 30 JUNE 2016 2016 £

Notes Fixed assets Tangible assets Current assets Debtors Cash at bank and in hand

Creditors: amounts falling due within one year

9

2015 £

£

5,726

13

£

8,589

191,473 74,180

150,967 100,493

265,653

251,460

(307,706)

(423,293)

14

Net current liabilities

(42,053)

(171,833)

Total assets less current liabilities

(36,327)

(163,244)

(36,327)

(163,244)

Capital and reserves Profit and loss reserves

17

The financial statements were approved by the board of directors and authorised for issue on ......................... and are signed on its behalf by:

..............................

Lord J S Deben Director

-7-

ASSOCIATION OF PROFESSIONAL FINANCIAL ADVISERS COMPANY BALANCE SHEET AS AT 30 JUNE 2016 2016 £

Notes Fixed assets Tangible assets Investments

Current assets Debtors Cash at bank and in hand

Creditors: amounts falling due within one year

9 10

13

2015 £

£

£

5,726 1

8,589 1

5,727

8,590

206,696 64,117

201,363 44,315

270,813

245,678

(298,874)

(399,043)

14

Net current liabilities

(28,061)

(153,365)

Total assets less current liabilities

(22,334)

(144,775)

(22,334)

(144,775)

Capital and reserves Profit and loss reserves

17

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.

The financial statements were approved by the board of directors and authorised for issue on ......................... and are signed on its behalf by:

..............................

Lord J S Deben Director Company Registration No.

-8-

ASSOCIATION OF PROFESSIONAL FINANCIAL ADVISERS GROUP STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2016

Notes Balance at 1 July 2014

Profit and loss reserves £ (133,164)

Year ended 30 June 2015: Loss and total comprehensive income for the year

(30,080)

Balance at 30 June 2015

(163,244)

Year ended 30 June 2016: Profit and total comprehensive income for the year

126,917

Balance at 30 June 2016

(36,327)

-9-

ASSOCIATION OF PROFESSIONAL FINANCIAL ADVISERS COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2016

Notes Balance at 1 July 2014

Profit and loss reserves £ (140,449)

Year ended 30 June 2015: Loss and total comprehensive income for the year

(4,326)

Balance at 30 June 2015

(144,775)

Year ended 30 June 2016: Profit and total comprehensive income for the year

122,441

Balance at 30 June 2016

(22,334)

- 10 -

ASSOCIATION OF PROFESSIONAL FINANCIAL ADVISERS GROUP STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2016 2016 £

Notes Cash flows from operating activities Cash absorbed by operations

19

2015 £

£

(26,313)

Investing activities Purchase of tangible fixed assets

-

£

(28,255)

(11,452)

Net cash used in investing activities

-

Net cash used in financing activities

-

(11,452) -

Net decrease in cash and cash equivalents

(26,313)

(39,707)

Cash and cash equivalents at beginning of year

100,493

140,200

74,180

100,493

Cash and cash equivalents at end of year

- 11 -

ASSOCIATION OF PROFESSIONAL FINANCIAL ADVISERS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 1

Accounting policies Company information Association of Professional Financial Advisers (“the company”) is a limited company domiciled and incorporated in England and Wales. The registered office is 100 Fetter Lane, London, EC4A 1BN. The group consists of Association of Professional Financial Advisers and all of its subsidiaries.

1.1

Accounting convention These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company.

Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

These group and company financial statements for the year ended 30 June 2016 are the first financial statements of Association of Professional Financial Advisers and the group prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The financial statements for the preceding period were prepared in accordance with previous UK GAAP. The date of transition to FRS 102 was 1 July 2014. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.

The group and company have adopted FRS102 early.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements: Ÿ Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £122,441 (2015 - £4,326 loss).

1.2

Basis of consolidation In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date.

Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

- 12 -

ASSOCIATION OF PROFESSIONAL FINANCIAL ADVISERS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2016 1

Accounting policies

(Continued)

The consolidated financial statements incorporate those of Association of Professional Financial Advisers and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

All financial statements are made up to 30 June 2016. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.3

Going concern The financial statements are prepared on a going concern basis under the historical cost convention. The going concern basis has been adopted as the directors consider that current and future sources of funding will be sufficient to enable the group to meet its debts as they fall due.

1.4

Turnover Turnover represents amounts derived from subscriptions and event income receivable form members in respect of the financial year. Membership contributions are credited to the income and expenditure account over the period to which they relate.

1.5

Tangible fixed assets Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: Fixtures, fittings & equipment Website costs

25% straight line 25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.6

Fixed asset investments Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

- 13 -

ASSOCIATION OF PROFESSIONAL FINANCIAL ADVISERS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2016 1

Accounting policies

(Continued)

1.7

Impairment of fixed assets At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount.

An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8

Cash and cash equivalents Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

1.9

Financial instruments The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

- 14 -

ASSOCIATION OF PROFESSIONAL FINANCIAL ADVISERS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2016 1

Accounting policies

(Continued)

Impairment of financial assets Financial assets are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised.

The impairment reversal is recognised in profit or loss.

Derecognition of financial assets Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities, including trade creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.10 Equity instruments Equity instruments issued by the group are recorded at the proceeds received, net of direct issue costs.

Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.11 Taxation The tax expense represents the sum of the tax currently payable and deferred tax.

- 15 -

ASSOCIATION OF PROFESSIONAL FINANCIAL ADVISERS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2016 1

Accounting policies

(Continued)

Current tax The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12 Employee benefits The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13 Retirement benefits Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14 Foreign exchange Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.

2

Judgements and key sources of estimation uncertainty In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

- 16 -

ASSOCIATION OF PROFESSIONAL FINANCIAL ADVISERS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2016 3

Turnover and other revenue An analysis of the group's turnover is as follows: 2016 £

2015 £

566,802

722,041

2016 £

2015 £

566,802

722,041

2016 £

2015 £

2,863

2,863

Fees payable to the company's auditor and associates:

2016 £

2015 £

For audit services Audit of the financial statements of the group and company Audit of the company's subsidiaries

6,544 3,505

6,236 2,990

10,049

9,226

Turnover Subscriptions and event income

Turnover analysed by geographical market

United Kingdom

4

Operating profit/(loss)

Operating profit/(loss) for the year is stated after charging/(crediting): Depreciation of owned tangible fixed assets

5

6

Auditor's remuneration

Employees The average monthly number of persons (including directors) employed by the group during the year was:

Office and management

- 17 -

2016 Number

2015 Number

5

9

ASSOCIATION OF PROFESSIONAL FINANCIAL ADVISERS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2016 6

Employees

(Continued)

Their aggregate remuneration comprised:

Wages and salaries Social security costs Pension costs

7

2016 £

2015 £

243,171 24,543 15,838

330,462 35,668 24,259

283,552

390,389

2016 £

2015 £

117,500 9,000

117,500 9,000

126,500

126,500

Directors' remuneration

Remuneration for qualifying services Company pension contributions to defined contribution schemes

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2015 - 1).

8

Taxation

UK corporation tax on profits for the current period

Tax expense for the year

2016 £ (6,663)

2015 £ -

2016 £

2015 £

(6,663)

The company is a member association that does not trade with organisations outside its own membership and it therefore has no liability to the UK Corporation Tax for trading income. A corporation tax charge arises on capital gains made and interest received in the year. The company's subsidiary falls under normal corporation tax rules and is charged at the standard tax rate of 20%. The subsidiary has tax losses of £89,103 (2015: £86,915) available to carry forward at the year end.

- 18 -

-

ASSOCIATION OF PROFESSIONAL FINANCIAL ADVISERS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2016 9

Tangible fixed assets Fixtures, Website costs fittings & equipment

Group

£

£

£

Cost At 1 July 2015 and 30 June 2016

22,749

7,560

30,309

Depreciation and impairment At 1 July 2015 Depreciation charged in the year

19,830 973

1,890 1,890

21,720 2,863

At 30 June 2016

20,803

3,780

24,583

Carrying amount At 30 June 2016

1,946

3,780

5,726

At 30 June 2015

2,919

5,670

8,589

Fixtures, Website costs fittings & equipment

Total

Company

10

Total

£

£

£

Cost At 1 July 2015 and 30 June 2016

22,749

7,560

30,309

Depreciation and impairment At 1 July 2015 Depreciation charged in the year

19,830 973

1,890 1,890

21,720 2,863

At 30 June 2016

20,803

3,780

24,583

Carrying amount At 30 June 2016

1,946

3,780

5,726

At 30 June 2015

2,919

5,670

8,589

Fixed asset investments

Notes Investments in subsidiaries

11

- 19 -

Group 2016 £

2015 £

Company 2016 £

2015 £

-

-

1

1

ASSOCIATION OF PROFESSIONAL FINANCIAL ADVISERS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2016 11

Subsidiaries Details of the company's subsidiaries at 30 June 2016 are as follows:

12

Name of undertaking and country of incorporation or residency

Nature of business

Class of shareholding

% Held Direct Indirect

APFA Services Limited

Promotion of the interest of financial advisers

Ordinary shares

100.00

United Kingdom

Financial instruments

Carrying amount of financial assets Debt instruments measured at amortised cost Equity instruments measured at cost less impairment Carrying amount of financial liabilities Measured at amortised cost

13

Group 2016 £

2015 £

Company 2016 £

2015 £

139,470

105,320

183,739

178,722

-

-

1

1

297,694

405,316

288,862

381,066

Group 2016 £

2015 £

Company 2016 £

2015 £

139,046 2,849 31,757

102,129 7,999 29,681

134,760 48,555 424 22,957

95,547 79,984 3,191 22,641

173,652

139,809

206,696

201,363

17,821

11,158

-

-

191,473

150,967

206,696

201,363

Debtors

Amounts falling due within one year: Trade debtors Amounts due from subsidiary undertakings Other debtors Prepayments and accrued income

Amounts falling due after one year: Deferred tax asset (note 15)

Total debtors

- 20 -

ASSOCIATION OF PROFESSIONAL FINANCIAL ADVISERS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2016 14

Creditors: amounts falling due within one year

Trade creditors Other taxation and social security Other creditors Accruals and deferred income

15

Group 2016 £

2015 £

Company 2016 £

2015 £

29,301 10,012 20,000 248,393

22,574 17,977 10,000 372,742

28,694 10,012 20,000 240,168

22,574 17,977 10,000 348,492

307,706

423,293

298,874

399,043

Deferred taxation Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

16

Group

Assets 2016 £

Assets 2015 £

Tax losses

17,821

11,158

Movements in the year:

Group 2016 £

Company 2016 £

Liability at 1 July 2015 Charge to profit or loss

(11,158) (6,663)

-

Liability at 30 June 2016

(17,821)

-

Retirement benefit schemes Defined contribution schemes Charge to profit or loss in respect of defined contribution schemes

2016 £

2015 £

15,838

24,259

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

17

Reserves Profit and loss reserves The profit and loss reserves are non-distributable.

- 21 -

ASSOCIATION OF PROFESSIONAL FINANCIAL ADVISERS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2016 18

Related party transactions Group and Company With the exception of Lord Deben and Christopher Hannant, all other members of the Council for 2015 2016 are directors of firms that were fully subscribed members of the Association of Professional Financial Advisers.

During the year, APFA Services Limited, a wholly owned subsidiary of the Association of Professional Financial Advisers, paid a management charge of £13,331 (2015: £45,000) to the Association. At the year end, APFA Services Limited owed £48,555 (2015: £79,984) to the company.

During the year, the company paid rent and services of £nil (2015: £70,268) to the Lighthouse Group Plc, a company where MJ Streatfield is a director. At the year end, a balance of £nil (2015: £nil) was owed to the Lighthouse Group Plc. The company also received membership subscriptions of £nil (2015: £16,000) from the Lighthouse Group Plc. At the year end, a balance of £nil (2015: £13,333) was owed to the company.

19

Cash generated from group operations 2016 £ Profit/(loss) for the year after tax

126,917

Adjustments for: Taxation credited Depreciation and impairment of tangible fixed assets

(6,663) 2,863

2015 £ (30,080)

2,863

Movements in working capital: (Increase)/decrease in debtors (Decrease) in creditors

(36,226) (113,204)

76,452 (77,490)

Cash absorbed by operations

(26,313)

(28,255)

- 22 -

Appendix II

Company Registration No. 06258946 (England and Wales)

APFA SERVICES LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016

APFA SERVICES LIMITED COMPANY INFORMATION

Directors

G Bottriell C Hannant

Secretary

Beach Secretaries Limited

Company number

06258946

Registered office

100 Fetter Lane London EC4N 1BN

Auditor

Rickard Luckin Limited Aquila House Waterloo Lane Chelmsford Essex CM1 1BN

Business address

46 Queen Anne's Gate London SW1H 9AP

APFA SERVICES LIMITED CONTENTS

Page Directors' report

1

Directors' responsibilities statement

2

Independent auditor's report

3-4

Profit and loss account

5

Balance sheet

6

Notes to the financial statements

8 - 12

APFA SERVICES LIMITED DIRECTORS' REPORT FOR THE YEAR ENDED 30 JUNE 2016 The directors present their annual report and financial statements for the year ended 30 June 2016.

Principal activities The principal activity of the company continued to be that of the promotion of the interests of Independent Financial Advisers by the organisation of conferences and events.

Directors The directors who held office during the year and up to the date of signature of the financial statements were as follows: G Bottriell C Hannant Auditor Rickard Luckin Limited were appointed auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of disclosure to auditor So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board

C Hannant Director 28 September 2016

-1-

APFA SERVICES LIMITED DIRECTORS' RESPONSIBILITIES STATEMENT FOR THE YEAR ENDED 30 JUNE 2016 The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: Ÿ select suitable accounting policies and then apply them consistently; Ÿ make judgements and accounting estimates that are reasonable and prudent; Ÿ prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

-2-

APFA SERVICES LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF APFA SERVICES LIMITED We have audited the financial statements of APFA Services Limited for the year ended 30 June 2016 set out on pages 5 to 12. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 applicable to companies that adopt the small companies regime.

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of directors and auditor As explained more fully in the Directors' Responsibilities Statement set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the annual report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements In our opinion the financial statements: Ÿ give a true and fair view of the state of the company's affairs as at 30 June 2016 and of its profit for the year then ended; Ÿ have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice applicable to smaller entities; and Ÿ have been prepared in accordance with the requirements of the Companies Act 2006.

Opinion on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of our audit, the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements, and the Directors' Report has been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified any material misstatements in the Directors' Report.

-3-

APFA SERVICES LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF APFA SERVICES LIMITED Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: Ÿ adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or Ÿ the financial statements are not in agreement with the accounting records and returns; or Ÿ certain disclosures of directors' remuneration specified by law are not made; or Ÿ we have not received all the information and explanations we require for our audit; or Ÿ the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and take advantage of the small companies exemption from the requirement to prepare a strategic report.

Caroline Peters (Senior Statutory Auditor) for and on behalf of Rickard Luckin Limited

.........................

Chartered Accountants Statutory Auditor

Aquila House Waterloo Lane Chelmsford Essex CM1 1BN

-4-

APFA SERVICES LIMITED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 30 JUNE 2016

Notes

2016 £

2015 £

Turnover Cost of sales

33,232 (18,567)

53,570 (31,275)

Gross profit

14,665

22,295

(16,852)

(48,049)

(2,187)

(25,754)

Administrative expenses Loss before taxation Taxation

6,663

Profit/(loss) for the financial year

4,476

-5-

(25,754)

APFA SERVICES LIMITED BALANCE SHEET AS AT 30 JUNE 2016 2016 £

Notes Current assets Debtors Cash at bank and in hand

Creditors: amounts falling due within one year

4

£

33,332 10,063

29,588 56,178

43,395

85,766

(57,387)

(104,234)

£

5

Net current liabilities

Capital and reserves Called up share capital Profit and loss reserves

2015 £

7

Total equity

(13,992)

(18,468)

1 (13,993)

1 (18,469)

(13,992)

(18,468)

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.

The financial statements were approved by the board of directors and authorised for issue on 28 September 2016 and are signed on its behalf by:

C Hannant Director Company Registration No. 06258946

-6-

APFA SERVICES LIMITED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2016

Share capital

Total

£

Profit and loss reserves £

Balance at 1 July 2014

1

7,285

7,286

Year ended 30 June 2015: Loss and total comprehensive income for the year

-

(25,754)

(25,754)

Balance at 30 June 2015

1

(18,469)

(18,468)

Year ended 30 June 2016: Profit and total comprehensive income for the year

-

4,476

4,476

Balance at 30 June 2016

1

(13,993)

(13,992)

Notes

-7-

£

APFA SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 1

Accounting policies Company information APFA Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is 100 Fetter Lane, London, EC4N 1BN.

1.1

Accounting convention These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.

These financial statements for the year ended 30 June 2016 are the first financial statements of APFA Services Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 July 2014. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.

The company has early adopted FRS 102.

1.2

Going concern The financial statements are prepared on a going concern basis under the historical cost convention. The going concern basis has been adopted as the directors consider that current and future sources of funding will be sufficient to enable the company to meet its debts as they fall due.

1.3

Turnover The turnover shown in the profit and loss account represents amounts receivable during the period.

1.4

Cash and cash equivalents Cash and cash equivalents include cash in hand and deposits held at call with banks.

1.5

Financial instruments The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

-8-

APFA SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2016 1

Accounting policies

(Continued)

Other financial assets Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publically traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets Financial assets are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised.

The impairment reversal is recognised in profit or loss.

Derecognition of financial assets Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including trade and other payables, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

-9-

APFA SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2016 1

Accounting policies

(Continued)

Other financial liabilities Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.6

Taxation The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

2

Operating loss Operating loss for the year is stated after charging/(crediting):

2016 £

2015 £

Fees payable to the company's auditor for the audit of the company's financial statements

3,505

2,990

- 10 -

APFA SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2016 3

4

Auditor's remuneration Fees payable to the company's auditor and associates:

2016 £

2015 £

For audit services Audit of the company's financial statements

3,505

2,990

2016 £

2015 £

4,286 11,225

6,582 11,848

15,511

18,430

Deferred tax asset

17,821

11,158

Total debtors

33,332

29,588

2016 £

2015 £

607 48,555 8,225

79,984 24,250

57,387

104,234

Debtors Amounts falling due within one year: Trade debtors Other debtors

Amounts falling due after one year:

5

Creditors: amounts falling due within one year

Trade creditors Amounts due to group undertakings Other creditors

6

Deferred taxation Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so.

The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Balances:

Assets 2016 £

Assets 2015 £

Tax losses

17,821

11,158

- 11 -

APFA SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2016 6

Deferred taxation

(Continued) 2016 £

Movements in the year: Liability/(Asset) at 1 July 2015 Credit to profit or loss

(11,158) (6,663)

Liability/(Asset) at 30 June 2016

(17,821)

The deferred tax asset set out above is expected to reverse after 12 months and relates to the uti lisation of tax losses against future expected profits of the same period.

The company has estimated losses of £89,103 (2015: £86,915) available for carry forward against future trading profits.

7

Called up share capital

Ordinary share capital Issued and fully paid 1 £1 Ordinary Shares of £1 each 8

2016 £

2015 £

1

1

Parent company The company is a wholly owned subsidiary of Association of Professional Financial Advisors Limited, a company incorporated in England and Wales. The registered office, and principal place of business, of Association of Professional Financial Advisors Limited is - 100 Fetter Lane, London, EC4N 1BN.

- 12 -

APFA SERVICES LIMITED MANAGEMENT INFORMATION FOR THE YEAR ENDED 30 JUNE 2016

APFA SERVICES LIMITED DETAILED TRADING AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 30 JUNE 2016

£ Turnover Sales of goods Cost of sales Spare direct costs Rent re licences and other Printing and stationery Advertising

2016 £

£

33,232

18,567 -

53,570

439 24,612 3,596 2,628 (18,567)

Gross profit Administrative expenses Operating loss

44.13%

2015 £

14,665

(31,275) 41.62%

22,295

(16,852)

(48,049)

(2,187)

(25,754)

APFA SERVICES LIMITED SCHEDULE OF ADMINISTRATIVE EXPENSES FOR THE YEAR ENDED 30 JUNE 2016

Administrative expenses Management charge Audit fees Bank charges

2016 £

2015 £

13,331 3,505 16

45,000 2,990 59

16,852

48,049

APFA 46 Queen Anne’s Gate London SW1H 9AP

Telephone: 020 7628 1287 Email:

info@apfa.net

Website:

www.apfa.net

Twitter:

official_APFA

LinkedIn:

association-of-professional-financial-advisers

YouTube:

officialAPFA

Registered in England No: 03779289 Registered office: 100 Fetter Lane, London, EC4A 1BN Ref: APFARA10/16