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The Institute
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 expenses exceeding revenues by $224K that includes $174K net unrealized gain on investments, $89K income from Advocis Broker Services Inc. and total assets of $19M.
Advocis Broker Services Inc. (ABS), the wholly-owned insurance brokerage arm of TFAAC, reported a profit from operations of $89K. ABS revenue grew by 14% in 2020, with revenues exceeding $1M.
The pandemic forced the postponement of many events and programs including in person local chapter events and all three of the Advocis Schools. Virtual events and programs were created. With the receipt of a $37K Ontario government grant, TFAAC launched a new program, Advocis Connect. Further, the 40 local chapters across Canada were able to successfully deliver many of their high quality educational programs and community events in a virtual environment at a lower cost.
Membership revenue declined in 2020 as a result of advisors exiting the industry and the ongoing financial impact of the pandemic. Growing membership remains a top priority as the Association seeks new and innovative ways to engage advisors and planners.
While education programs experienced high demand in the first half of the year, demand in the latter half of the year plateaued. Already committed to providing quality professional education for advisors and planners, TFAAC launched the Professional Financial Advisor (PFA) designation along with new CFP curriculum program in the Q1 2020. While costs year over year increased, TFAAC anticipates that the capital investment in both of these and other programs will provide future dividends to the Associations bottom line.
Operating expenses remained flat in comparison to 2019. As the association pivoted throughout the pandemic, TFAAC continued to support various ongoing advocacy initiatives, immediately migrated staff to a secure work environment and took advantage of the 10% wage subsidy to help retain staff. When technology and security was more important than ever, TFAAC continued its investment plans for new and updated technology infrastructure.
2020 brought many challenges throughout the pandemic. TFAAC was able to successfully pivot operations while continuing to provide education, community and support to members and the industry during difficult times.
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