Financial Planners Standards Council
902-375 University Avenue
Toronto, ON
2J5
Telephone: 416 593 8587
Toll Free: 1 800 305 9886
Email: inform@fpsc.ca
Website: www.fpsc.ca
CFP®, CERTIFIED FINANCIAL PLANNER® and
are certification marks owned outside the U.S. by Financial Planning
Standards Board Ltd. (FPSB). Financial Planners Standards Council is the marks licensing authority for the CFP marks in
Canada through agreement with FPSB. ©2008, Copyright Financial Planners Standards Council. All rights reserved.
2008-2009
annual report
Table of Contents
Our Purpose, Mission and Values . ............................................................................
2
Message to our Stakeholders..................................................................................... 3
President’s Message
Chair’s Message
RAISING AWARENESS............................................................................................ 6
FOSTERING A PROFESSIONAL ENVIRONMENT.................................................. 9
The Path to CFP® Certification.................................................................................... 10
LEADING THE PROFESSION.................................................................................. 13
Profile of the Profession.............................................................................................. 16
2009 Financial Statements ........................................................................................ 19
Member Organizations............................................................................................... 20
FPSC Board of Directors............................................................................................ 21
FPSC ANNUAL REPORT 2008-2009
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TABLE OF CONTENTS
Our Purpose
To ensure the financial planning needs of Canadians are well served.
Our Mission
We develop, promote and enforce professional standards in financial
planning and we raise awareness of the importance of financial planning.
Our Values
Financial Planners Standards Council embraces professionalism,
demonstrates leadership and offers an unparalleled commitment to
excellence, quality and continuous improvement in every task
we undertake and each relationship we forge and preserve.
We believe diversity is a vital ingredient in any productive
environment. Our dedication to an equitable workplace will always
ensure that all are valued and all are treated with dignity.
We value our integrity and our passion; it is the basis for our
reputation and our source of strength.
We expect to be held accountable, always striving to be clear
and open in all of our communications.
Above all, and in every transaction and engagement we are ethical,
respectful and fair.
2
Message to
our Stakeholders
President’s Message
Like most Canadians, FPSC will remember 2008 -09 as a year of challenge. The economic downturn in the fall of
2008 created uncertainty for all. Many looked at the erosion of their retirement savings and expressed concern on their
future financial wellbeing. However, with challenge always comes opportunity and this past year was no exception.
FPSC saw this year in particular as one in which the benefits of financial planning became especially salient.
In the last year, we clarified our purpose of ensuring the financial planning needs of Canadians are well served. This
clear statement of purpose reached deep into FPSC’s core. Everything we do as an organization now directly reflects
this purpose, giving us greater strength to stay on course and to do what’s needed.
The economic crisis also brought into focus the lack of existing research on the real benefits of financial planning and
of CFP® certification. FPSC began addressing this gap with a groundbreaking study on the value of financial planning
– initiated this fiscal year and expected to be published in the winter of 2010.
We placed a high value on education this year: for candidates, by unveiling a new Capstone Course as part of the new
certification path; for CFP professionals, by introducing new CE requirements that now align with the Competency
Profile; and for consumers, by promoting the importance of financial planning to all.
Finally, as we continue to develop voice as the authority on the financial planning profession, cooperation with
governments, regulators, allied organizations and industry takes on renewed importance, and we’re up for the
challenge.
The commitment of FPSC staff, the Board, Committees and all volunteers continues to impress. It is both heartening
and encouraging to know we have such a dedicated team of individuals committed to our purpose. I look forward
to the next year, as we continue on our course towards ensuring the financial planning needs of Canadians are
well served.
On a final note, you’ll see a different look for FPSC throughout this year’s Annual Report. It’s a sneak preview of the
new brand identity FPSC will officially unveil next year. We hope you like it.
Cary List
CA, CFP
President and CEO
Financial Planners Standards Council
FPSC ANNUAL REPORT 2008-2009
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Chair’s Message
FPSC is maturing. We recognize the meaningful commitment and responsibility we have to Canadians in
working to achieve a financial planning solution in Canada, and for providing them with competent and ethical
financial planners. Other organizations are showing increased recognition of FPSC; regulators are taking greater
notice of our role. It is undeniable to say that FPSC is growing in profile, visibility and acceptance, and I am
immensely proud of the role the Board has played in assisting this progression.
As Board Members and FPSC staff worked together at the October Board meeting to develop a revamped
mission and values statement, it was a revelation to me the extent to which we are united in our perception of
FPSC’s purpose: to ensure the financial planning needs of Canadians are well served.
Our governance structure was rejuvenated this fiscal year to ensure the representation of a variety of
perspectives, including that of the first- ever Public Member, Ellen Roseman, Toronto Star finance columnist.
The new structure encourages greater involvement from the CFP® professional community. We felt it was
incumbent to have CFP professionals participate directly in the election of a portion of FPSC leadership, similar
to other professional organizations.
I am appreciative of the exemplary group of people that sit on the FPSC Board, as well as the FPSC staff who
bring our vision to life. I look forward to seeing FPSC further fulfill its potential in the years ahead.
Cheryl Bauer Hyde
CFP
Bauer Hyde Financial Services
4
Thank you
to our dedicated
volunteers.
FPSC is proud of the passion and dedication of its many CFP®
professional volunteers across Canada. As a Toronto-based organization,
FPSC relies on volunteers coast-to-coast to create a presence in their local
communities. The success of many of our public relations and media
activities depends upon them and the knowledge they enthusiastically
impart to Canadians. Volunteers also provide subject matter expertise in
financial planning for examination development activities like item
development and test writing.
Raising Awareness
In the 2008-2009 fiscal year, FPSC continued to build upon existing relationships
and projects to accomplish our goal of obtaining recognition of financial
planning as a distinct profession. Concern regarding succession planning for
financial planners brought a renewed focus on attracting new candidates to
the profession, while the economic crisis of fall 2008 provided a platform for
FPSC to speak to Canadians – through a variety of media – about the value and
importance of financial planning.
“Now, more than ever…”
The economic downturn in fall 2008 had many Canadians
Landmark financial planning
study underway
thinking about their personal financial situation, and FPSC
In 2008, FPSC laid the groundwork for a landmark
harnessed that opportunity to create a conversation
“Value of Financial Planning” study that will begin in the
about the value of financial planning.
2009-2010 fiscal year. This significant five-year study,
In September 2008, Canadians experienced the value
proposition of financial planning and of CFP® professionals
in particular during the GLOBAL TV HELPLINE segment.
More than 400 Canadians called in with questions and
concerns about their current financial situation during the
immensely popular segment.
which will follow a group of Canadians and track their
financial situation, will quantify the tangible benefits
of financial planning as well as the value related to
achieving one’s life goals (the emotional benefits of
financial planning).
This ground-breaking study is the first of its kind in
Canada, and given the lack of existing research on
“CFP®” in the media
FPSC continues to be highly-regarded amongst trade
and consumer media for sourcing financial planning
experts. Throughout the 2008 - 2009 fiscal year,
numerous community print, industry papers and local
radio programs interviewed CFP professional volunteers
as experts in various financial planning issues, like
mortgages, divorce, post graduates, youth, severances,
etc. We also issued 12 news releases on a variety of
timely finance topics to consumer and industry press.
the real value of financial planning, we look forward to
sharing the preliminary results in late 2009.
NOCA Conference
At the NOCA 2008 Educational Conference in November,
FPSC staff presented a seminar entitled “How to Really
Use Your Competency Profile to Drive Your Certification
Requirements” to approximately 50 conference
attendees. Led by FPSC, this presentation also featured
speakers from Advocis, CGA-Canada, and the CFA
Institute.
6
Connecting with Canadians
Attracting new candidates
To reach wider audiences with the financial planning story,
FPSC staff (often accompanied by CFP professional
volunteers) attended 15 career recruitment events in the
2008-2009 fiscal year. Career events and designation
days continue to be crucial as FPSC moves to address
both the potential lack of talent that is causing concern
in the financial services industry and to communicate
the 2010 certification program changes.
FPSC participated in six tradeshows in this fiscal year.
Thousands of people stopped by the FPSC booth at a
variety of venues across Canada to learn more about
financial planning and to talk to a CFP professional.
Information sessions, facilitated by FPSC and hosted by
CFP professional volunteers, continued to be popular:
eight seminars in three provinces occurred this fiscal. These
sessions objectively informed hundreds of Canadians
about the value of financial planning and encouraged an
interactive engagement on financial planning issues.
FPSC staff recognized
for expertise
FPSC staff continue their involvement in external projects
that will further FPSC’s consumer-interest mandate. Cary
List, President and CEO, is in his third year on the Board
of the National Association for Competency Assurance
(NOCA), and remains active in the advancement of
financial planning internationally as FPSC’s delegate to
the international FPSB Council. Dr. John Wickett, Senior
VP, Standards and Certification, has joined IIROC’s
Education and Equivalency Committee.
Lovett-Reid wins 2009 DJJ Award
The 2009 winner of the Donald J. Johnston Award
for Excellence in Financial Planning (DJJ award)
was Patricia Lovett-Reid, Senior Vice President of
TD Waterhouse. Patricia’s career in the financial
services industry spans more than 20 years, and
Presentations about CFP certification were in
unprecedented high demand this fiscal year. FPSC
facilitated 17 sessions with the assistance of professors
and teachers from colleges and universities across Canada.
The Student Associate Program continues to increase in
value for its members. In the 2008-2009 fiscal year, FPSC
held three interactive webinars for Student Associates,
and new sample exam questions were added regularly.
The number of members has remained steady, with
approximately 530 as of March 2009.
Unique candidate groups
FPSC attended two conferences targeting internationally
educated professionals seeking information on the banking
and finance industry in Canada, and provided information
via networking sessions and panel discussions.
FPSC engaged professionals holding an Approved Prior
Credential (APC) to encourage them to earn CFP certification
as a value-add for their clients. FPSC staff presented at an
Accounting Conference and Wealth Management tour;
CFP professional volunteers also spoke to two local chapter
groups for accountants in Alberta. Another campaign
encouraged APC bodies to notify their members about the
2010 Certification changes.
she is a respected public educator and sought-out
media personality. Patricia directed the $10,000 DJJ
charitable donation to Youth in Motion.
FPSC ANNUAL REPORT 2008-2009
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FPSC Officially
Announces Changes
to CFP Certification
Program
®
“Candidates for CFP certification will have an opportunity to demonstrate their
competence in serving the financial planning needs of Canadians through a progressive certification process that provides them with a pathway to success;
employers will be assured of a credential that continues to earn its reputation as the highest standard in financial planning; and the public will continue to be
assured that a CFP professional holds the credential that represents the appropriate
competence and ethical standards in financial planning to serve their needs.”
Cary List, President and CEO, FPSC
Excerpt from June 24, 2008 press release
Fostering a Professional
Environment
FPSC strives to ensure CFP® professionals gain access to adequate professional
resources and services. In this fiscal year, we continued to build on relationships
with industry players for the purpose of increased support of CFP certification
and FPSC’s financial planning standards.
Evolution of continuing
education requirements
To better align continuing education (CE) activities with the
CFP Professional Competency Profile, new requirements
were announced in 2009. In effect as of January 1, 2009
in regard to strengthening the relationship between
IQPF and FPSC, and will work toward a more formalized
relationship in 2009-2010 fiscal year, to ensure common
standards across all provinces.
be related to the CFP Professional Competency Profile
FPSC website: a hub for the
public and professionals
through the elements of competency, the professional
In addition to acquiring our new web domain, www.fpsc.ca,
skills or the technical knowledge required. CE activities
FPSC’s online presence continued to improve in the
are now classified as “verifiable” or “non-verifiable”.
2008-2009 fiscal year. The job site continues to grow as
and to be reported in the 2009 period, all activities must
a resource – presently, we have posted opportunities from
Annual licence certificate for CFP professionals
107 employers.
FPSC developed new certificates for CFP professionals
place for a major revamp of the website in the 2009-2010
which accompany the FPSC annual licence. Newly licensed
fiscal year.
To make the site more intuitive and user-friendly, plans are in
professionals receive the certificate as well as a new ‘seal’
every year to continue to demonstrate to their clients that
they are keeping up their licensing requirements.
IQPF & FPSC
Working with key stakeholders
FPSC staff and representatives of Member Organizations
continued to engage in discussions on matters of
mutual interest during the 2008-2009 fiscal year. FPSC
FPSC continued to meet with Institut québécois de
continued to work closely with CIFPs, discussing items like
planification financère (IQPF) to advance our mutual
the proposed IIROC financial planning rule. In his keynote
interests, and FPSC also attended a networking session
address at the annual CIFPs conference in spring 2008,
hosted by Authorite des Marches Financiers (AMF).
Cary List spoke to the results of recent FPSC surveys which
We are pleased with the progress that has been made
illuminate the challenges faced in increasing the perceived
value and understanding of financial planning.
FPSC ANNUAL REPORT 2008-2009
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The Path
to CFP
Certification
®
Core
Curriculum
10
Financial
Planning
Examination
Level 1
Effective as of July 1, 2010.
Officially
register
with FPSC
Complete a
minimum of
1 year work
experience
Capstone
Course
Financial
Planning
Examination
Level 2
Complete
remainder of
3 year work
experience
FPSC ANNUAL REPORT 2008-2009
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Demand for
financial planners
is high.
As millions of Baby Boomers retire and fewer people enter the workforce,
there will be a shortage of talent in finance jobs – yet demand for these
services continues to grow.
In 2006, Canadian Business magazine deemed careers in financial planning
as a major growth area through to 2012.
A Statistics Canada study from 2008 reported that the demand for
financial professionals across all sectors in Canada is beyond the number
of qualified individuals.
In the U.S., a report by Fast Company magazine listed “Personal Financial
Advisor” as one of the Top 25 Jobs for 2005-2009, with growth projected at
35 per cent through to 2012.
Leading the Profession
This fiscal year, we continued to set and enforce relevant and rigorous standards
for financial planning professionals in Canada. Major revisions to the CFP®
certification program added a new dimension to our role as the leading standardssetting body for financial planning in Canada.
2010 Certification Program
changes announced
The proposed changes to CFP certification were initially
released in an Exposure Draft in June 2008. The Exposure
Draft invited comments from industry stakeholder groups,
and the responses received were very supportive of the
stakeholders (member organizations, regulators, industry
professionals) and developed a brochure which outlines
the new certification program. We also facilitated speaking
opportunities at colleges, universities and finance clubs to
communicate these details most effectively.
direction proposed by FPSC.
Capstone Course development
FPSC officially announced the changes to the CFP
The introduction of the Capstone Course, which requires
Certification Program in December 2008. In effect as of July
1, 2010, candidates pursuing CFP certification will take
an additional “Capstone Course” in addition to the current
education requirement. Another significant change to the
program saw the standardized national exam split into
two distinct components: Financial Planning Examination
Level 1 (FPE1) and Financial Planning Examination Level
2 (FPE2). The work experience requirement has been
candidates to develop and present a comprehensive
financial plan, kept staff (and FPSC’s Academic Advisory
Committee) busy developing Course requirements and
resources, as well as the Application for Approval of
Capstone Course (released December 2008) for potential
providers. To earn approval, a Capstone Course must
meet specific learning objectives developed by FPSC, and
utilize an FPSC-developed case study in the completion
increased, from two years to three.
of comprehensive financial plans.
During this fiscal year, FPSC’s Certification Scheme
To gain insight on usability and pedagogical value, the
Committee approved the blueprints for FPE1 and
FPE2, leading the way for sample item development
for experimental testing in 2009.
As part of the new program, all candidates are now
required to maintain Continuous Registration with FPSC
cases were piloted in three live classroom environments:
Fanshawe College, George Brown College, and Ryerson
University. FPSC plans to discuss the results of the pilot
at the 2009 FPSC Educator Conference.
while they are working towards CFP certification. They will
Core Curriculum applications
be expected to abide by the CFP Code of Ethics and will
As of March 31, 2009, 22 applications for renewal of
have access to all Student Associate Program features.
Core Curriculum programs were received and approved.
Communicating these changes clearly to all relevant parties
and stakeholders was a priority this past year. In addition
FPSC was pleased to receive four new applications
from one university and three colleges.
to a press release, FPSC sent e-communications to all
FPSC ANNUAL REPORT 2008-2009
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New VP emphasizes
enforcement and greater
regulation for financial planning
Enhanced governance structure
In October 2008, FPSC created the position of Vice-
in 2008-2009. The review focused primarily on the role
President, Policy & Enforcement and General Counsel
of Member Organizations and the constitution of the
and hired Stephen Rotstein, LL.B. In addition to oversight
Board of Directors.
of the Ethics & Enforcement area, the VP advocates on
After a process that included extensive research as well as
the value of financial planning and professional certification
with regulators, government officials and other external
stakeholders, ensuring FPSC’s voice is heard on financial
planning-related matters and standards. This fiscal year,
Stephen met with Government officials and regulators
including Saskatchewan Financial Services Commission,
British Columbia Securities’ Commission, Ontario Ministry of
Finance, and Investment Industry Regulatory Organization
of Canada (IIROC).
Application for ISO 17024
certification
ISO 17024 is an international standard for certifying bodies
developed by the International Standards Organization
and awarded nationally by the Standards Council of
Canada. The standard is based on the well-known ISO
9001 standard for quality management, but also includes
standards related specifically to running a certification
organization and programs.
In the 2008-2009 fiscal year, an extensive external
review of internal procedures was conducted to ensure
that FPSC’s policies and procedures are in line with ISO
requirements. As a result FPSC developed a Quality
Policy and set in motion a new Quality Management
System. FPSC expects to formally receive ISO 17024
accreditation in September 2009.
To align FPSC’s governance structure with its new
strategic plan, FPSC underwent a full governance review
consultations with the FPSC Board of Directors and Member
Organizations, the Board finalized proposed changes to
FPSC’s governance structure and bylaws. All changes
were unanimously approved on June 12, 2008 at FPSC’s
Annual Meeting of Members in St. John’s, Newfoundland.
FPSC welcomed the addition of a Public Member seat as
part of the new Board structure. The Public Member, who
cannot be a CFP professional nor be directly involved in the
financial services industry, provides a unique consumeroriented perspective on financial planning issues. Ellen
Roseman, a personal finance and consumer affairs columnist
with the Toronto Star, was appointed in June 2008.
Three seats were also created for CFP professionals,
who are to be elected directly by the CFP professional
community. The election for the first CFP professional
seat will take place in April 2009.
New strategic vision
In October 2008, the Board and Senior Management
team refined FPSC’s strategic plan. This revamped
plan demonstrates a fine-tuning of focus and mission,
a formal embrace of our role and responsibility to the
Canadian consumer, and reinforces FPSC’s commitment
to the ongoing professionalization of financial planning.
In addition, FPSC developed a set of corporate values
that details our dedication to organizational excellence
and continuous improvement.
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Standards
enforcement update
Having a standards enforcement
FPSC welcomed over 60 delegates, including international representatives,
process that is clear and accessible
to the 2008 FPSC Educator Conference on May 22-23 in Toronto.
to Canadians is important to FPSC. To
this end, we developed and launched
an online complaints tool. This tool
offers the public another avenue to the
existing complaints process, which was
previously accessible only by phone or
Attendees got a first look at the 2010 certification program changes, and
a panel discussion with key employers from the financial services industry
generated lively discussion. Feedback indicates that the conference was a
great success. The 2009 conference, with an added half-day workshop, is
planned for May 26-28, 2009.
regular mail.
In the 2008-2009 fiscal year, 640 CFP
professionals were randomly selected
for audit of their Continuing Education
activities. Of these, 64 were found to
be deficient, and 13 CFP professionals
could no longer comply with CE
requirements and chose to cancel their
licence. Three files were forwarded to
the Director of Ethics for review.
FPSC in the media
In this fiscal year, FPSC was increasingly
called upon as a source for credible
information and a voice for financial
planning standards. Throughout the
year, we were in the media spotlight
commenting on issues such as financial
planning regulation, financial literacy
initiatives, ethics for financial planners
and more.
2008 FPSC
Educator Conference
This year’s conference marked another
step forward in strengthening our
relationship with the educator community.
FPSC ANNUAL REPORT 2008-2009
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Profile
of the
Profession
Knowing about
CFP® professionals ultimately
helps us understand their
needs better – and therefore,
helps them best serve the
Canadian public.
The following information is culled from the license renewal forms that CFP professionals complete each year. By submitting information
such as age, methods of compensation and demographics, FPSC gets a better idea of who these planners are, what they do and where they do it.
FPSC also uses these statistics to identify trends within the CFP
professional population. For example, the increasing percentage of CFP professionals who are over the age of 50 is an issue that FPSC is preparing to address in the coming years.
Additionally, this information is of value to candidates interested in
becoming CFP professionals, and is useful for members of the media
who call FPSC for credible, relevant information on Canada’s largest
body of professional financial planners.
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FPSC ANNUAL REPORT 2008-2009
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Auditors’ Report on
Summarized Financial Statements
To the Stakeholders of
Financial Planners Standards Council
The accompanying summarized balance sheet and statement of operations and changes in unrestricted net
assets and cash flows are derived from the complete financial statements of Financial Planners Standards
Council as at March 31, 2009 and for the year then ended on which we expressed an opinion without
reservation in our report dated April 21, 2009. The fair summarization of the complete financial statements is
the responsibility of the Council’s management. Our responsibility, in accordance with the applicable Assurance
Guideline of The Canadian Institute of Chartered Accountants [“Guideline”], is to report on the summarized
financial statements.
In our opinion, the accompanying financial statements fairly summarize, in all material respects, the related
complete financial statements in accordance with the criteria described in the Guideline referred to above.
These summarized financial statements do not contain all the disclosures required by Canadian generally
accepted accounting principles. Readers are cautioned that these statements may not be appropriate for
their purposes. For more information on the Council’s financial position, results of operations and cash flows,
reference should be made to the related complete financial statements.
Chartered Accountants
Licensed Public Accountants
Thornhill, Canada,
April 21, 2009.
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Member Organizations
FPSC was formed on the initiative of organizations whose
members deal with the personal finances of individuals.
It continues to be supported through the participation of:
CMA Canada
Canadian Institute of Chartered
Accountants (CICA)
10,000 students in Canada.
Canadian Institute of Chartered Accountants
(CICA) represents a membership of over 66,000
professional accountants and 8,500 students in
Canada and Bermuda.
Management Accountants around the world and
www.cma-canada.org
Credit Union Institute of Canada (CUIC)
Credit Union Institute of Canada (CUIC) is the national
educational arm of Credit Union Central of Canada,
www.cica.ca
the association representing the Canadian credit union
Canadian Institute of Financial
Planners (CIFPs)
caisse populaires with assets of $114 Billion.
The CIFPs is an association of Canadian
CFP professionals.
www.cifps.ca
Certified General Accountants
Association of Canada (CGA)
Certified General Accountants Association of Canada
is a national self-regulating association of 60,000
CGAs and students.
www.cga-canada.org
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CMA Canada represents more than 40,000 Certified
system – a system of more than 430 credit unions/
www.cusource.ca
The Financial Advisors Association
of Canada (Advocis)
The Financial Advisors Association of Canada
(Advocis) is a professional organization representing
professional insurance and financial advisors.
www.advocis.ca
FPSC Board of Directors
2008-2009 Fiscal
Chair
Past Chair
Cheryl Bauer Hyde, CFP
Peter Volpe, CFP
Bauer Hyde Financial Services
Senior Vice President
Integra Capital Financial Corp.
Vice-Chair
Debbie Ammeter, LL.B., CFP
President
VP, Advanced Financial Planning Support
Cary List, CA, CFP
Investors Group
Financial Planners Standards Council
Members:
John Charette, CFP
Randall Reynolds, MBA, CLU, Ch. FC, CFP
Senior Business Advisor
President
CIBC Imperial Service
FAB Financial Advisors Brokerage Group Inc
Paul A. Issacson, CLF, CFP
Sally Rycroft, CGA, CFP
Senior Vice President, Sales and Distribution
President
Credential Financial
Rycroft & Associates, Inc.
James Kraft, CA, CLU, TEP, CFP
Lisa Pflieger, CGA, TEP, CFP
Marketing Vice President, Independent Advisors
Department Leader, Tax, Estate and
Manulife Financial
Financial Planning
Edward Jones
Alan Munro, FCA, CFP
Senior Financial Advisor
Ellen Roseman
Assante Capital Management
Toronto Star Columnist
FPSC ANNUAL REPORT 2008-2009
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