Annual Report - 2006 / 2007
FPSC did not produce a full annual report for 2006 / 2007. We did, however, create a report on our finances. View the financial statements in PDF format.
Annual Report - 2005 / 2006
Here is the web version of our 2005-2006 Annual Report for your online review. Contact Us for a print copy of the Report with graphics or view the full
Report in PDF format.
For older Annual Reports, please contact FPSC Communications.
2005-2006 ANNUAL REPORT
MISSION STATEMENT
Financial Planners Standards Council benefits the public
by leading the evolution of the
financial planning
profession in
Canada through
the development,
enforcement and promotion of the highest competency and ethical
standards in financial planning as defined by individuals who have earned the Certified Financial Planner® (CFP®) designation.
TO OUR STAKEHOLDERS
Early in the fiscal year, we held our Annual Board Appreciation Reception in Halifax, Nova Scotia. It is always a genuinely celebratory event to which we invite local or visiting CFP professionals and other stakeholders so that we may offer our appreciation of your contribution to our mission and to recognize individuals who were named to the President’s List for their outstanding performances on the previous year’s CFP Examinations sittings. We’ve held these receptions since 2002 in different locations across Canada. Each year we have witnessed the enthusiasm with which our newest members to the CFP community greet their futures as financial planning professionals intensify.
Each year there is greater perception by all our stakeholders that earning and keeping the CFP credential represents a significant step up.
The perception is astute. In our latest survey of Canadians conducted this past year, we found the attributes most strongly associated with the CFP brand (and more strongly
than all other credentials denoting professionals who deal with aspects of people’s personal financial affairs) are:
- good customer service — expressed in terms of empathy and accessibility; and
- knowledge — expressed in terms of breadth, depth and relevance.
Our studies and those of others have determined financial professionals believe CFP certification is an excellent way to enhance and validate one’s financial planning skills and knowledge, to differentiate and broaden one’s service offering, and to advance one’s career.
Additionally, industry and media representatives and our own web-based Job Site convince us that the financial services industry in Canada continues to employ in increasing numbers those who have earned or are in the process
of attaining CFP certification. It is from our community of almost 17,000 CFP professionals from which they are choosing those who serve their financial planning clients.
Today, recognition by clients, colleagues and employers of the magnitude and importance of the accomplishment and responsibility of professional certification in financial planning — what it means to be a financial planning professional — is greater than ever.
At our 10th Anniversary celebration in Toronto this past January, the infectious enthusiasm and pride that was expressed was just as exuberant as at the June Board Reception. The accolades we received from so many friends and colleagues for our first decade of work in advancing the profession of financial planning in Canada were at times overwhelming. But we must again express, as we did at this anniversary event, our belief that so much of what we have accomplished in our first decade is the result of the influence and efforts of many people working within
and outside the walls of FPSC’s Toronto office.
The enthusiasm and pride of our stakeholders remain our inspiration. It is with and for you that we always strive to be better than we were and to do better than we did. As you will read in the following pages, with your continued support and inspiration, we’re ready to take financial planning in Canada and around the world to the next level — one where recognition and adoption of uniform CFP standards is recognized as tantamount to the advancement of the financial planning profession.
FPSC is ready to step up to challenges ahead because all of you — the almost 17,000 CFP professionals in Canada, the organizations that employ them, the educational institutions that continue to keep their skills and knowledge relevant, the professional organizations that represent and support them in their careers and those that directly support our work at FPSC, and our dedicated group of staff members and volunteers — already have.
Thank you.
Donald J. Johnston President
Margaret Koniuck Chair
STANDARDS & CERTIFICATION
The development and enforcement of CFP standards that are relevant and appropriate to the profession today and tomorrow remain cornerstones of our success. Significant advancements in these areas reached stages of practical application this past year.
Leading up to the 2005/06 fiscal year, FPSC finalized the development of the new CFP Financial Planning Practice Standards that provide clarity and guidance with respect to how the CFP Code of Ethics applies to each and every financial planning engagement. Using these standards as a practical guide, CFP professionals made necessary adjustments to their practices throughout the year and are now expected to be in full compliance with them.
Additionally, the 2005 CFP Professional Competency Profile that defines professional financial planning in Canada is currently guiding the advancement of all aspects of CFP certification. For example, it is currently helping FPSC develop revised curriculum guidelines for coursework requirements at those educational institutions providing or planning to provide FPSC-registered programs across the country, the number of which has grown to 30 this past year. FPSC continues to work closely with universities, colleges, and industry education providers to encourage relevant financial planning-related courses and the development of more programs leading to CFP certification. The Competency Profile is also currently guiding the extensive review and development of the CFP Examination.
Clearly, our advancing standards of professionalism must be enforced if Canadians are to continue to trust the integrity of the CFP credential and all those who hold it. Last year’s refinement of our disciplinary review process, the clarity provided by the CFP Practice Standards and our growing list of over 900 CFP professionals who are prepared to volunteer their time and energy for disciplinary hearing panels in all regions in Canada collectively ensure we are ready at all times to investigate and, when warranted, act on formal complaints regarding alleged actions of individual CFP professionals.
In fact, the growing list of CFP professionals prepared to volunteer their valuable time to participate on a variety of standards- and exam-related committees attests to the groundswell of professional pride sweeping the community of CFP professionals across the country.
STANDARDS ENFORCEMENT 2005-2006
All events or series of events that give rise to allegations of misconduct against individuals licensed to use the CFP credential are investigated and, if found to contravene the Code of Ethics, constitute grounds for discipline, which may include reprimand, fine, and temporary suspension or revocation of the CFP licence.
Standards Enforcement Files
Cases Under Investigation at Start of Fiscal 2006-2007: 5
New Files Opened: 19
Cases Closed: 13
# of Cases Resulting in Disciplinary Action: 01
Cases Still Under Review: 11*
* Subsequent to the fiscal year-end, March 31, 2006, and at the time of printing, 5 of these cases were closed, 3 resulting in disciplinary action.
Trademark Enforcement 2005-2006
Unauthorized Use Cases*
Opened: 10
Closed: 12**
Cases Still Under Review: 0
* Unauthorized use cases involve instances in which individuals or entities use the CFP marks without being licensed to do so.
** Files closed include those carried over from previous year.
* Unauthorized use cases involve instances in which individuals or entities use the CFP marks without being licensed to do so.
** Files closed include those carried over from previous year.
FPSC Accredited Education Program Providers:*
March 31, 1998: 7
March 31, 1999: 9
March 31, 2000: 11
March 31, 2001: 21
March 31, 2002: 25
March 31, 2003: 28
March 31, 2004: 28
March 31, 2005: 29
March 31, 2006: 30
This chart reflects the number of education programs registered directly with FPSC that, if successfully completed, qualify individuals to sit the CFP Examination offered twice yearly in June and November in both official languages in centres across Canada.
All FPSC accredited programs are certificate, diploma or degree programs that cover the CFP Examination Syllabus and are offered by reputable institutions through either in-class or distance learning courses.
* Some program providers have entered into academic partnerships.
As a result there are currently over 70 institutions offering courses of study leading to CFP certification.
ADMINISTRATION
Gathering, processing and maintaining up-to-date information and certification documents for the growing number of individuals currently licensed to use the CFP certification marks, and for those on the way, are activities vital to maintaining the integrity of the marks. Our diligence and vigilance in these activities protect the CFP brand’s reputation as the gold standard in the industry and enhance our service to stakeholders.
This year, FPSC and our community of professionals reaped the full benefit of our integrated database system and web-based interface implemented in 2004/05. Never have licensing and renewal procedures gone more smoothly and efficiently than during this past year.
But process is only part of the success story. Every day, FPSC staff members respond to e-mail and telephone inquiries from planners, employers, students, government agencies, educators and the public. Every day staff members generate their own inquiries to validate or update FPSC’s knowledge bank. Their exemplary commitment to excellence, accessibility and responsiveness in stakeholder communication and service continues to bolster FPSC’s reputation as the Canadian authority on standards and professional certification in financial planning.
PROFILE OF THE PROFESSION
FPSC embraces and remains diligent in its dual role as curator and steward of the nascent financial planning profession. Every year, at either the initial licensing or renewal of their right to use the CFP certification marks, CFP professionals share information about themselves — their personal practice and careers — that helps FPSC map the professional landscape. However, these aggregate statistics only tell part of the story. FPSC also regularly conducts and commissions surveys and studies of the attitudes and perceptions of the CFP community, their employers, and of the consumers of financial services to deepen our understanding and to enhance our service to all FPSC stakeholders. In the year ahead, we are also probing for the first time the attitudes of those who will be entering the profession in the next few years.
Did you know CFP professionals today have more than 100,000 years of experience between them? For more facts about this growing community visit www.cfp-ca.org.
COMMUNICATIONS
There are many ways to
tell a story. This past year alone we’ve told ours through:
- radio programs featuring CFP professionals on ask-an-expert style radio programs in cities across Canada;
- FPSC close-captioning sponsorship of popular television programs;
- CFP print advertisements in
lifestyle and industry magazines, and national newspapers;
- corporate seminars and secondary school classroom presentations
on financial planning and on the financial planning profession;
- events including the 10th Anniversary celebration in Toronto and the International FPSB Council meetings in Vancouver;
- wide-spread distribution of brochures and other print consumer information materials;
- pro-active support and encouragement of mass media coverage of relevant financial planning issues;
- significant web presence and targeted e-mail campaigns;
- CFP professionals participating as brand ambassadors in community events and information sessions;
- FPSC participation in career fairs and consumer and industry trade shows; and
- the creation of the Donald. J. Johnston Award that recognizes and inspires outstanding contribution to the profession of financial planning in Canada.
Our surveys and those of others confirm that in these many ways we are inspiring thousands of Canadians to make informed decisions about the management of their personal finances. We are empowering Canadians with unbiased accurate information on what financial planning is, what its benefits are and whom they can trust to provide qualified ethical professional financial planning services.
We’ve engaged in an exciting conversation with Canadians, one that is making a positive contribution to their lives.
AUDITOR'S REPORT
To the Stakeholders of Financial Planners Standards Council
The accompanying summarized balance sheet and statement of operations and changes in unrestricted net assets are derived from the complete financial statements of Financial Planners Standards Council as at March 31, 2006 and for the year then ended on which we expressed an opinion without reservation in our report dated April 28, 2006. 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, 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.
Thornhill, Canada
Ernst & Young
April 28, 2006. Chartered Accountants
MANAGEMENT'S ANALYSIS OF OPERATIONS
FPSC increased its licence fee by $20.37, resulting in higher licencing revenue in this fiscal year. A higher retention rate of 97%, as compared with 96% in the previous year, and an increase in the number of licensed CFP professionals also contributed to the overall increase in licence fee revenue of 12.7%.
Expenditures in this fiscal year were 12.8% higher than the previous year, primarily as a result of the following:
- a full year of licence fees payable to Financial Planning Standards Board for the use of the marks in this fiscal year. The previous year’s expense was only three months, due to a change in accounting policy by Financial Planning Standards Board;
- additional consulting fees relating to the redesign of FPSC’s certification program, resulting from the outcome of the competency analysis project;
- increased spending in communication efforts for brand and industry surveys, printing of brochures due to a high demand from CFP professionals and advertising costs to improve brand awareness; and
- consulting fees for the CEO search.
INTERNATIONAL
There are currently almost 100,000 CFP professionals throughout the world.
FPSC and the other non-profit associations that together manage CFP certification in 18 countries and two organizations in the process of becoming CFP certifying organizations are members of the Financial Planning Standards Board Ltd. (FPSB). This international entity owns the CFP certification and service marks outside the U.S. and its territories. FPSB and its members, along with the owners of the CFP marks in the United States — Certified Financial Planner Board of Standards Inc., recognize their shared interest and responsibility in advancing the standards of the CFP certification program in their respective territories and throughout the world. We work cooperatively in this effort.
FPSC’s ongoing involvement and leadership in this global community is necessary to serve the increasingly international needs and interests of our stakeholders, and to protect the considerable CFP brand equity we have built here in Canada over our first decade of operations.
This past year, FPSC President Don Johnston and Chair of the 2005/06 FPSC Board of Directors Margaret Koniuck held seats on the nine-member international Board of Directors. This year, Ms. Koniuck and FPSC’s incoming Chair, Peter Volpé
will continue Canada’s representation on the FPSB Board.
Additionally, the international board is supported by an advisory group that consists of representatives from the FPSB member organizations, including FPSC. At the biannual meetings of this International Council that was hosted this April by FPSC in Vancouver, British Columbia, we once again offered our considerable expertise and experience to further the work at hand — the development of internationally relevant uniform standards. At this meeting, we agreed to share our groundbreaking Financial Planning Competency Profile. The international community agrees that the work we have done in Canada is singular in its precise and comprehensive delineation of the knowledge and skills required of professionals offering financial planning, and that it has significant relevance and will be of tremendous assistance in guiding our collective global efforts.
STANDING COMMITTEES
June 2006 – June 2007
CHAIR, Audit
James W. Kraft CA CLU TEP CFP
CHAIR, Ethics and Practice
Debbie Ammeter LL.B TEP EPC CFP
CHAIR, Panel of Examiners
Sally Rycroft CGA CFP
INCOMING CHAIR'S COMMENTS
As planners and as clients of planners, we’re very fortunate here in Canada to have the stewardship of the financial planning profession as a top priority
of one of the leading financial planning standard-setting bodies in the world: FPSC. How do I know FPSC is worthy of such a title? My fellow Board members and I witnessed first-hand the respect FPSC has earned in the global arena.
At the Spring 2006 meeting of the FPSB Council in Vancouver, l saw the eagerness with which this international community of CFP-accrediting organizations from around the world anticipated using our made-in-Canada CFP Code of Ethics, Practice Standards and Competency Profile as guides for the development of a new uniform set of global financial planning standards that are to become the foundation of the emerging global CFP brand.
FPSC’s first job is to develop and promote the standards behind the CFP brand in Canada. However, to ensure there will be no erosion of the integrity of the marks here, we must also protect the integrity of the CFP brand globally. Being the role model for the rest of the world is a sure-fire way for FPSC to do just that.
Another way to protect and continue to enhance the integrity of the
CFP marks in all communities served by CFP professionals, is to nurture an environment in which FPSC’s talented and committed staff and volunteers can continue to perfect their game to the benefit of all our stakeholders. It is an honour and a privilege to make this my priority as Incoming Chair of the 2006/07 FPSC Board of Directors.
Peter G. Volpé CFP
PARTNER ORGANIZATIONS
FPSC is a Canadian not-for-profit organization grateful for the support
of the following associations whose members deal with the personal finances of others:
- The Financial Advisors Association of Canada (Advocis)
- The Canadian Institute of Chartered Accountants (CICA)
- The Canadian Institute of Financial Planning (CIFP)
- Certified General Accountants Association of Canada (CGA-Canada)
- Certified Management Accountants of Canada (CMA-Canada)
- Credit Union Central of Canada (CUCC)
BOARD OF DIRECTORS
CHAIR
Peter G. Volpé CFP
Integra Capital, Toronto, Ontario
PAST CHAIR
Margaret Koniuck CGA CFP
CorporateCARE Inc., Winnipeg, Manitoba
PRESIDENT
Cary List CA CFP — representing FPSC
Financial Planners Standards Council
VICE CHAIR
Cheryl Bauer Hyde FCUIC CFP — representing Advocis
Bauer Hyde Financial Services, Regina, Saskatchewan
Debbie Ammeter LL.B TEP EPC CFP — Independent
Investors Group, Winnipeg, Manitoba
Keith Costello — representing CIFP
Canadian Institute of Financial Planning, Toronto, Ontario
Gordon C. Ferguson FCGA CAFM ALA CFP — representing CGA-Canada
EPR Gordon C. Ferguson & Co., Slave Lake, Alberta
Paul A. Issacson CLF CFP — representing CUCC
Credential Financial, Vancouver, British Columbia
Ted F. Jordan CFP — Independent
ScotiaMcLeod, Truro, Nova Scotia
James W. Kraft CA CLU TEP CFP — Independent
Manulife Financial, Unionville, Ontario
Amin Mawani CMA CFP — representing CMA-Canada
York University, Schulich School of Business, Toronto, Ontario
Alan Munro CA CFP — representing CICA
Assante Capital Management Ltd., Mississauga, Ontario
Lisa Pflieger CGA CFP — Independent
Edward Jones, Mississauga, Ontario
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