AMI covering costs despite AIFA losses
Robert Sinclair, director of AMI, revealed sustaining income had been “challenging” as a result of consolidation among intermediary firms as well as lenders.
But he said despite large losses at AIFA, the “cost of resources applied to AMI is covered by income generated from AMI members”.
And he added: “AMI has continued to stabilise and grow, albeit marginally. In a market still finding its feet, this is good news.”
Sinclair said steps had been taken to reduce cost and increase income in the past year so that the trade body “could return to a more balanced basis in 2011/12”.
In September AMI was rumoured to be locked in discussions about whether to form an independent trade body outside of AIFA – something it denied.
Sinclair would not comment on whether these discussions were ongoing but said: “AMI continues to want to be part of a strong AIFA.”
No breakdown of AMI income is available but AIFA results show turnover at the trade body is down 12% annually from £1,853,393 to £1,629,319.
Last year it posted an operating surplus of £14,919 for 2009/10. AIFA is considering imposing higher fees for networks to try to boost its flagging income.