The Financial Planning Association (FPA) has turned the 2010 financial year’s small profit into a $542,000 loss for the 12 months ending June 30.

The association also saw a fall in revenue from $11.2 million for 2009/10 to $10.8 million.

Most of the loss during 2010/11 was due to restructuring costs of $819,000, but this was offset by $208,500 from advertising levies from members.

FPA CEO Mark Rantall says in the annual report the before-tax loss stemmed from “tough decisions” such as closing the Melbourne office.

“We drew from our reserves to invest in our profession’s future after having received the mandate to do so from our member base,” he said. “While the 2011 financial year saw a surplus from operations, the extraordinary expenses incurred produced an overall loss.”

The operating surplus for 2010/11 was $485,470 compared to $182,518 last year.

Wages for FPA staff fell from $766,000 in 2010 to $673,200 during the latest reporting period, but performance bonuses rose from $171,000 in 2009/10 to $252,236 in 2010/11.

Mr Rantall says the FPA still has $5.8 million in member funds, although this is down from $6.3 million at June 30 last year.

The association aims to increase its membership to generate more revenue and use increased levies to pay for the $2 million national advertising campaign.

FPA membership at June 30 this year was 11,283, with 7925 being financial advisers.