The Financial Planning Association (FPA) has reported a $606,000 surplus for the 2006 financial year, helping to return its reserves to 2003 levels.

Chairman Corinna Dieters says the second surplus in a row stems from tighter expenditure management and stronger revenue from educational activities and the FPA National Conference.

“We are now in a strong financial position and have fully recovered from the 2003/04 deficit,” she said.

Although the year was financially positive, it did produce several challenges for financial planners.

“The Australian Securities and Investments Commission ‘shadow shopping’ survey and the collapse of Westpoint, among other issues, have made it a challenging year for FPA members – the vast majority of whom deliver a highly professional and valuable service to clients – and for the FPA as a professional association.”

She says the organisation continues to work on improving the public image of planners. “The FPA has worked over the past year to focus on the value of advice delivered by financial planners, and to lift professional standards among our members.”