ANNUAL REPORT 2013/14 APRIL 1, 2013 TO MARCH 31, 2014

Transcription

1 ANNUAL REPORT 2013/14 APRIL 1, 2013 TO MARCH 31, 2014

2 About Financial Planning Standards Council Financial Planning Standards Council (FPSC) is a notfor-profi t organization which develops, promotes and enforces professional standards in fi nancial planning through Certified financial Planner certifi cation. As a standards-setting and certifi cation body, FPSC ensures CFP professionals and FPSC Level 1 Certifi cants in Financial Planning meet appropriate standards of competence and professionalism through rigorous education, examination, experience and ethics requirements. More information about FPSC is available at FPSC s Purpose FPSC s Purpose Our purpose is to instill confi dence in the fi nancial planning profession. Our Mandate 1. Defi ne fi nancial planning 2. Certify professionals 3. Develop and enforce standards 4. Promote the FPSC and CFP professional brands and the fi nancial planning profession Our Strategic Goals / Ends 1. Financial planning is clearly defi ned 2. A single set of fi nancial planning standards is established, embraced and enforced 3. Financial planning is recognized as a profession 4. Canadians demand fi nancial planning from FPSC-recognized professionals 5. Financial planners seek and maintain FPSC-recognized certifi cation

3 Table of Contents Report of the Chair of the Board...2 President s Message...4 FPSC Board of Directors...6 Goal: Financial Planning is Clearly Defi ned...7 Goal: Financial Planning is Recognized as a Profession...10 Goal: Canadians Demand Financial Planning from FPSC-Recognized Professionals...11 Goal: Financial Planners Seek and Maintain FPSC-Recognized Certifi cation...12 Goal: A Single Set of Financial Planning Standards is Established, Embraced, and Enforced...8 Financial Statements

4 Report of the Chair of the Board The fi nancial planning profession is defi ned, enforced and continually enhanced by CFP professionals who comprise the profession, in partnership with consumers of fi nancial planning services and the public at large. CFP professionals volunteer their time to FPSC to ensure that all of those who obtain the designation not only have extensive education and professional on-the-job training, but that they are held to a high standard that is worthy of the profession a standard that engenders the trust of society. Lisa Pflieger, CGA, TEP, CFP Chair, FPSC Board of Directors FPSC s purpose is to instill confi dence in the fi nancial planning profession. As fi duciaries to FPSC, the Board of Directors is responsible for establishing organizational policies and monitoring the organization s performance to ensure we achieve our stated goals. The Board recognizes that stakeholder engagement at all levels is a critical element of our work. In the context of FPSC, it is more than best practice; rather it is integral to the evolution of the fi nancial planning profession and essential if we are to achieve our goals. I am proud to report that in the past year, under the guidance and leadership of the Board, and our President & CEO Cary List and his team, we have engaged a total of 188 CFP professionals who collectively donated just shy of 3,000 hours in the maintenance and growth of standards that serve to protect the integrity of the CFP designation the gold standard in the fi nancial planning profession. 2

5 In 2013/14, Board Standing Committees comprised of CFP professionals included: 1. Enforcement Policy Committee (EPC) which is responsible for overseeing the Disciplinary Rules and Procedures for the more than 18,400 CFP professionals and FPSC Level 1 Certifi cants in Financial Planning in Canada. This past year, the EPC also recommended signifi cant revisions and enhancements to FPSC s standards enforcement policies which I am pleased to report were ratifi ed by the Board. 2. Conduct Review Panel which consists of both experienced CFP professionals and members of the public who are appointed by the EPC to consider cases and investigate complaints against CFP professionals and FPSC Level 1 certifi cants throughout the year. Volunteer CFP professionals also took a lead role in the development of the examinations. Throughout 2013/14 these included: 32 CFP professional item writers who developed examination multiple-choice and constructedresponse questions for the two rigorous examinations required to obtain the CFP designation. 40 CFP professionals who fi eld tested the examinations and provided feedback on content. 22 CFP professionals who, with the guidance of FPSC staff, scored the constructed-response portion of the examinations. 16 CFP professionals who represent the two separate Panels of Examiners, who were responsible for determining the cut score for the four examinations that were conducted this past year. confi dence FPSC s purpose is to instill in the fi nancial planning profession. 3. Certification Committee which is responsible for the oversight and review of policies related to attaining and maintaining CFP certifi cation and FPSC Level 1 certifi cation. 4. Two separate Panels of Examiners which are responsible for developing the FPSC Level 1 Examination in Financial Planning and the CFP examination. These panels oversee examination development and establish pass marks in accordance with generally accepted measurement standards to ensure that the examinations are fair and reliable and that pass/fail decisions are valid and defensible. And they promoted the financial planning profession: This past year saw 40 CFP professionals acting as liaisons and resources to our education providers, introducing the benefi ts of the fi nancial planning profession to Core Curriculum students. Twelve others acted as Media Ambassadors, answering the many requests of various media throughout the year related to the practice of fi nancial planning in Canada. It has been an honour to serve as Chair of the Board of Directors this past year. As volunteers who are entrusted with oversight of the important work that FPSC does, the Board is so pleased that FPSC engages so many other volunteers with a passion for, and an expertise in, the fi nancial planning profession who have stepped up to work hand-in-hand with the Board and management to achieve our collective vision. I thank each of them for their contributions. Lisa Pfl ieger, CGA, TEP, CFP Chair, FPSC Board of Directors 3

6 President s Message FPSC plays an integral role in the evolution of the fi nancial planning profession. As a non-profi t organization which represents the interests of the Canadian public, we work with many diverse stakeholders in the establishment, maintenance and enforcement of the gold standard in the profession the CFP designation. The more than 17,000 CFP professionals in Canada are part of an international network of over 150,000 Certified financial Planner professionals worldwide. As an organization, we play a leadership role in the development of the profession both domestically and internationally through our partners in the international Financial Planning Standards Board. The past year has been yet another of signifi cant accomplishment as we continue to grow and expand fi nancial planning s sphere of infl uence for the benefi t of all Canadians. FPSC s Board and management have concentrated considerable attention and resources in areas related to professional advocacy, the refi nement of our standards, the strengthening of our enforcement processes, creating clarity by better defi ning fi nancial planning and helping to inform and safeguard the public about its benefi ts. leadership As an organization, we play a role in the development of the profession. 4

7 Cary List, CPA, CA, CFP FPSC President & CEO Our work continues to pay dividends. This past year saw considerable interest in investigating the merits of standardization and recognition of financial planners unique role within financial services by a number of provincial governments, regulators and industry stakeholders. Working with our three partners who constitute the Coalition for Professional Standards in Financial Planning*, we have engaged in a number of discussions with the Ontario government as they explore the merits of proceeding with more tailored regulation for financial planners. Our recommendations would see governments codifying in law the professional certification structures and oversight mechanisms that already exist in practice for CFP professionals but that are currently voluntary. It is our goal to ensure that all those who claim to be financial planners in Canada are held to the same high standards as CFP professionals are currently. Our participation in these discussions continues and we look forward to contributing in an advisory capacity to the expert committee the government has committed to establish on the issue in the coming year. The initiatives we undertook this year would not have been possible without the guidance and counsel of our many stakeholders. Consultation with our educational partners saw FPSC improving both our online and face-to-face communications with them. Educators commitment and passion for financial planning was demonstrated at the FPSC Educator Conference in May 2013, which marked its seventh year. Guidance from industry stakeholders factored significantly into our decision to refine the path to CFP certification and to review and adopt new Routes to CFP Certification that recognize relevant prior credentials. And I am delighted with the extent to which the financial services industry supported and embraced the fifth annual national Financial Planning Week that took place in November Of particular note, I would like to acknowledge those industry representatives and CFP professionals who lent their time and expertise toward the creation of the first edition of the Canadian Financial Planning Definitions, Standards & Competencies to be released later this fall the definitive source for what to expect of financial planners across the country. This joint publication of FPSC and IQPF will not only help steer the direction of the profession, but as importantly, assist the public in understanding what should be expected of a financial plan, financial planner and financial planning in Canada. Looking forward to 2014/15, FPSC will be establishing a Professional Practice Working Group that will be responsible for the development and maintenance of the practice standards as they relate to the knowledge, skills and abilities of CFP professionals and FPSC Level 1 certificants, as well as introducing a Technical Knowledge Sub-Group which will be responsible for the development of a detailed technical knowledge document that will form the basis for knowledge expectations within the CFP Professional Competency Profile. Much has already been said about the contributions to the profession provided by Certified Financial Planner professionals. I would be remiss if I didn t recognize those individuals who have provided their thoughts, suggestions and expert counsel on on a daily basis to me and my entire team. Your informal contributions to the development of the profession are invaluable. Finally, I d like to formally thank and congratulate the FPSC Board of Directors, FPSC staff, and the many others who have generously supported our efforts, on another successful year. Cary List, CPA, CA, CFP FPSC President & CEO * Members of the Coalition for Professionals Standards in Financial Planning include Financial Planning Standards Council (FPSC), the Canadian Institute of Financial Planners (CIFPs), the Institute of Advanced Financial Planners (IAFP) and the Institut québécois de planification financière (IQPF) 5

8 FPSC Board of Directors The 2013/2014 Board of Directors consisted of: Chair Lisa Pfl ieger, CGA, TEP, CFP Vice Chair Dawn Hawley, R.F.P., TEP, CDFA, CFP Past Chair James Kraft, CPA, CA, MTax, TEP, CFP President & CEO Cary List, CPA, CA, CFP Members Dan Busi, CFA, FMA, CFP Cheri Dawn Carey, LL.B. Doug Carroll, BBA, JD, LL.M (Tax), TEP, CFP Gena Katz, FCPA, FCA, CFP Gerald Matier Peter Shena Gilles Sinclair, FICB, Pl. Fin. Catherine Wood, MBA, CLU, CFP Senior Management Team Cary List, CPA, CA, CFP President & CEO Isabelle Gonthier, PhD Senior Director, Certifi cation Process & Examinations Kimberley Ney, MBA Vice President, Communications and Program Development Stephen Rotstein, LL.B. Vice President, Policy & Regulatory Affairs and General Counsel Heather Terrence, CAE Vice President, Operations Joan Yudelson, MBA, CFP Vice President, Professional Practice The FPSC Board of Directors consists of ten individuals, made up as follows: Six Certified financial Planner professionals Three public directors One licensed fi nancial planner from the province of Québec Past Chair (ex-offi cio, non-voting) President (ex-offi cio, non-voting) 6

9 Goal: Financial Planning is Clearly Defi ned Financial Planning Defi nitions, Standards and Competencies FPSC and the Institut québécois de planifi cation fi nancière (IQPF), the two principal organizations that establish and maintain the standards for the fi nancial planning profession in Canada, continued their strategic alliance this year, joining forces to create a unifi ed set of defi nitions, standards and competencies for individuals holding the F.Pl. and Certified financial Planner designations. The fi rst edition of this work will be released during Financial Planning Week in November The document will serve several distinct audiences fi nancial planners, candidates for certifi cation, educators, employers and the Canadian public by providing clarity around what to expect of fi nancial planners. Recognizing that there was no unifi ed source for clarity on fi nancial planning defi nitions and professional fi nancial planning standards in Canada, FPSC and IQPF sought consultation with industry stakeholders and fi nancial planning professionals across the country to establish the Canadian Financial Planning Definitions, Standards & Competencies as the defi nitive source for what to expect of fi nancial planning, a fi nancial planner and a fi nancial plan. 7

10 Goal: A Single Set of Financial Planning Standards is Established, Embraced and Enforced Standards & Enforcement FPSC develops and enforces ethical and professional standards for its more than 18,400 registrants across Canada. CFP professionals and FPSC Level 1 Certifi cants in Financial Planning adhere to rigorous standards, including a requirement to place clients interests ahead of their own and all other interests. As the professional organization responsible for the oversight of CFP professionals and FPSC Level 1 certifi cants in Canada, FPSC is tasked with ensuring public confi dence in the profession. Developing and enforcing professional standards protects the Canadian public and in so doing enhances the reputation of the fi nancial planning profession. This past year saw the completion of a comprehensive review of FPSC s enforcement processes with the goal of meeting or exceeding best practices among other professional organizations in North America. The review identifi ed opportunities to enhance our processes and improve transparency, fairness and impartiality in the review of complaints. Of signifi cant note, FPSC introduced a dedicated investigations function and established an independent Conduct Review Panel (the Panel ) to consider matters of alleged misconduct. The Panel consists of CFP professionals and members of the Canadian public appointed by FPSC s Enforcement Policy Committee a standing committee of FPSC s Board of Directors. The Conduct Review Panel exercises broad discretionary authority in making decisions about complaints from both internal and external sources, including the public and outside licensing and regulatory authorities. Where FPSC has recommended a formal disciplinary process and the Conduct Review Panel has determined that it is appropriate and in the public interest to initiate a formal disciplinary process, the matter is referred to an expert administrative panel of the Enforcement Policy Committee (a Hearing Panel ). Where a CFP professional is found by the Hearing Panel to have breached a provision of the Standards of Professional Responsibility for CFP Professionals and FPSC Level 1 Certificants in Financial Planning, the Hearing Panel will impose what it determines to be the appropriate regulatory response ranging from guidance to a letter of admonishment to permanent revocation of the right to use the CFP Marks or, in the instance of an FPSC Level 1 certifi cant, a permanent ban from certifi cation. The following is a summary of the enforcement activities that took place over the past year. FPSC is tasked with ensuring public confi dence in the profession. 8

11 Verifiable Credits Required (January 1 to December 31) Breakdown by Category: Financial Planning Practice Management Product Knowledge Giving Back CFP Professionals Annual Credits 10 minimum 25 maximum 0 minimum 5 maximum 0 minimum 5 maximum 0 minimum 5 maximum FPSC Level 1 Certificants Carry-Over Permitted to Next Calendar Year 25 maximum No No No Annual Credits 7 minimum 12 maximum 0 minimum 5 maximum, combined for all three categories Carry-Over Permitted to Next Calendar Year 12 maximum No No No Types of Complaints & Resolutions Throughout the past year FPSC received a variety of complaints of misconduct against CFP professionals and FPSC Registered Candidates (now FPSC Level 1 Certificants in Financial Planning). With 37 complaints in total throughout the year, 23 were related to the FPSC Code of Ethics or FPSC Rules of Conduct. Eight of the allegations were related to the application of FPSC Practice Standards and five related to questions of fitness as a professional under the FPSC Fitness Standards. FPSC resolved 34 complaints over the fiscal year, with 11 complaints remaining active as of March 31, Of these, 28 complaints were dismissed with no further action, four were withdrawn by the complainant, one generated a disciplinary decision and one was dismissed with a caution. Maintaining the integrity of the CFP Marks is essential to preserving the trust that Canadians place in the CFP Marks and as such, and to further protect the public, FPSC takes trademark violations very seriously. Only those who remain in good standing with FPSC are permitted to use the CFP Marks. FPSC dealt with and resolved 142 trademark violations throughout the fiscal year. Two violations remained outstanding as at March 31, Continuing Education: Expansion of Categories and Changes to CE Requirements In September 2013, FPSC made enhancements to the Continuing Education (CE) guidelines for CFP professionals to include new qualifying categories in Practice Management, Product Knowledge and Giving Back. The new categories reflect both the value of CFP professionals continued competence in the technical aspects of the planning process and the continual development of their professional skills; they also recognize the important role CFP professionals play in their contribution to the betterment of society and the positive impact that has on their own professional skills. FPSC also announced the introduction of a CE Professional Responsibility requirement that will become effective in January 2015 for both CFP professionals and FPSC Level 1 Certificants in Financial Planning. This requirement is designed to ensure that CFP professionals and FPSC Level 1 certificants truly understand their ethical obligations to always put their clients interest first, to act with the prudence of a professional and to avoid conflicts of interest FPSC Educator Conference The seventh annual FPSC Educator Conference took place in Toronto in May 2013, featuring a variety of diverse presentations. Academics and educators from institutions across the country gathered to discuss educational requirements for CFP certification and collaborate on effective strategies for teaching financial planning to Canada s future CFP professionals. Expansion of FPSC CE Approval Program Launched in October 2012, the FPSC CE Approval Program assesses CE activities submitted by a wide variety of education providers to determine the number of qualifying credits their activity is eligible for. The program is a convenient, one-stop resource for CFP professionals and FPSC Level 1 certificants, providing them assurance that the CE activities that they participate in throughout the year will count toward their annual CE requirements. The program saw significant increases in the year, with more than 1,900 FPSC-approved CE Credits available in all categories as of March

12 Goal: Financial Planning is Recognized as a Profession FPSC Public Policy FPSC regularly contributes to discussions with government offi cials, regulators and other stakeholders on issues that impact the fi nancial planning profession, both domestically and internationally. Investigating the Merits of More Tailored Regulation of Financial Planning in Ontario In Ontario, the government s Fall Economic Outlook and Fiscal Review included the Ministry of Finance s commitment to investigate the merits of proceeding with more tailored regulation of fi nancial planners. The government held industry consultations on the subject in January 2014, which included recommendations from FPSC and our partners in the Coalition for Professional Standards for Financial Planners. As part of the consultations, the Coalition submitted a proposed framework for the offi cial recognition and oversight of the fi nancial planning profession. This framework is based on standards already in place and accepted by industry and the more than 22,000 qualifi ed fi nancial planners across Canada, more than 9,000 of whom reside in Ontario. In the subsequent Ontario budget, the government committed to setting up an expert committee that will further study the merits of tailored regulation of fi nancial planners and provide the government with options if regulation is required. We look forward to continuing to provide counsel to this process in the coming year. Regulatory Framework for Financial Planners: It s all About the Details In March 2014, Toronto Board of Trade hosted an event with panelists Cary List, President & CEO of FPSC, and John Wilkinson, the fi rst ever CFP professional elected to the Ontario Legislature. The discussion was facilitated by columnist Preet Banerjee. With a variety of fi nancial industry representatives and media in attendance, the content focused on the need for Canada to adopt a set of clear, singular standards of competence, ethics and practice for the fi nancial planning profession. Almost Half of Canadians Believe There Are Regulatory Standards in Place for Financial Planners In January 2014, on behalf of the Coalition for Professional Standards for Financial Planning, FPSC commissioned a national omnibus study to determine Canadians awareness of and participation in the fi nancial planning process and their perceptions on how it is regulated. The study revealed that many Canadians feel they have insuffi cient knowledge to adequately plan their fi nancial future and most alarmingly are unaware of the lack of regulatory standards in place throughout most of Canada that would govern the profession. This information is being used to continue to promote the need for a professional regulatory model for fi nancial planning. There is a need for Canada to adopt a set of clear, singular standards of competence, ethics and practice for the profession. 10

13 Goal: Canadians Demand Financial Planning From FPSC-Recognized Professionals Consumer Awareness Campaign 2013 FPSC undertook an unprecedented amount of consumer awareness advertising in We introduced the Build Your Financial Plan with a CFP Professional television campaign, which aired on CBC over 300 times during a three-week period in November. As a result of this initiative, FPSC s Find a Planner tool saw a 500% increase in the number of Canadians seeking out a Certified financial Planner professional in their vicinity. The Globe and Mail published its annual six-page Financial Planning Week special information feature in partnership with FPSC, with additional articles published online. The feature reached nearly 1.4 million Canadians. The FP Standard magazine, FPSC s semi-annual publication of ideas, thoughts and trends in the fi nancial planning profession, saw record circulation in the past year. It reached 86,000 members of the fi nancial services industry across Canada through insertion in the Investment Executive newspaper, with another 40,000 copies distributed electronically. We introduced the CFP designation to prospective candidates through our Certifi ed Necessity campaign, which appeared frequently in targeted Maclean s magazine issues, The Globe and Mail, Investment Executive and a variety of digital media (including placement as feature sponsor of the eight-week Future of Jobs campaign on macleans.ca). FPSC also connected with more Canadians online last year than ever before, with our Financial Planning Week website receiving twice as many visitors in November 2013 as the previous year. More than 183,000 Canadians connected with our messages through Twitter, Facebook and LinkedIn, as well as through the Build Your Financial Plan with a CFP Professional commercial on YouTube. New FPSC Website The FPSC website serves as a valuable resource for the Canadian public and other FPSC stakeholders. In March 2014, FPSC launched a new, easier to navigate website at fpsc.ca, with streamlined content and a more responsive design that adjusts to various mobile devices and web browsers. Here s the Plan In January 2014, FPSC unveiled Here s the Plan, consisting of a variety of helpful tools that CFP professionals can use with their clients. The tools demonstrate to Canadians the value of fi nancial planning and educate them on the benefi ts of working with a Certified financial Planner professional. 11

14 Goal: Financial Planners Seek and Maintain FPSC-Recognized Certifi cation Global Value of CFP Certification Survey In December 2013, FPSC participated in an international study conducted on behalf of our international membership body, Financial Planning Standards Board Ltd. (FPSB). Canada was among the 12 countries that participated in the study. A total of 114 fi nancial services fi rms took part in the survey. Canadian respondents agreed that, compared with non-certifi ed individuals, CFP professionals generated higher revenue and higher profi t, employing CFP professionals translated to lower compliance and legal risks and that CFP professionals positively impacted client satisfaction and retention. Enhancements to Path to CFP Certification and New Routes to CFP Certification In March 2014, FPSC announced changes along the path to CFP certifi cation and new Routes to CFP Certifi cation which became effective July 1, Of signifi cant note was the replacement of the former Registered Candidate status with a new FPSC Level 1 Certifi cation in Financial Planning. FPSC Level 1 certifi cants are required to complete annual Continuing Education requirements and must adhere to a professional code of conduct to maintain their certifi cation. Attainment of FPSC Level 1 certifi cation represents confi rmation of readiness to move forward on the path to CFP certifi cation. Concurrent with this change, FPSC introduced new Routes to CFP Certifi cation which offer various exemptions for individuals who already hold relevant fi nancial planning related or other professional qualifi cations. Our Student Community of Interest website and portal has been designed for those interested in achieving the gold standard in the profession. 12

15 Student Community of Interest and Passport to CFP Designation Supports Prospective Candidates In November 2013, FPSC launched our new Student Community of Interest website and portal at beafinancialplanner.ca. Designed for those interested in the financial planning profession, it provides an avenue for FPSC to communicate with and provide support to prospective candidates throughout their journey to CFP certification. To further guide prospective candidates, we also introduced a printed Passport to CFP Designation, containing information about the profession and step-by-step details of how to navigate the path to CFP certification. CFP Professional Candidate Recruitment Ambassador Program In September 2013, FPSC launched the CFP Professional Candidate Recruitment Ambassador Program, bringing students face to face with practicing CFP professionals who provide insight into the day-to-day life of a Certified Financial Planner professional. Since the program s inception, CFP professional Candidate Recruitment Ambassadors have participated in more than 50 events, providing education and mentorship to almost 7,000 students. Record Participation in Financial Planning Week 2013 FPSC was pleased to welcome a record number of participants in the 5th annual Financial Planning Week events. Of particular note, the CFP Professional Symposium Beyond the Numbers was filled to capacity with 350 planners in attendance. Symposium participants explored a number of less tangible issues that often have no simple or absolute solutions but that are both timely and relevant in today s financial planning environment. Expert presenters from across North America discussed topics such as emotional intelligence, cognitive decline and ethics, and provided tools and resources to facilitate client appreciation and understanding. The event was well-received, with 83% of attendees indicating they would definitely or probably attend the Symposium again. The Celebration of the Profession Reception & Dinner, held the night before the Symposium, brought together more than 200 CFP professionals, students, educators, industry leaders, regulators and representatives from all levels of government to celebrate the financial planning profession and recognize those who have made significant contributions to the field. 13

16 Financial Statements Independent Auditor s Report To the Members of Financial Planning Standards Council The accompanying summary fi nancial statements, which comprise the summary statement of fi nancial position as at March 31, 2014, the summary statements of operations, changes in unrestricted net assets and cash fl ows for the year then ended, are derived from the audited fi nancial statements of Financial Planning Standards Council for the year ended March 31, We expressed an unmodifi ed audit opinion on those fi nancial statements in our report dated June 19, Those fi nancial statements, and these summary fi nancial statements, do not refl ect the effects of events that occurred subsequent to the date of our report on those fi nancial statements. The summary fi nancial statements do not contain all the disclosures required by Canadian accounting standards for not-for-profi t organizations (ASNPO). Reading the summarized fi nancial statements, therefore, is not a substitute for reading the audited fi nancial statements of Financial Planning Standards Council. Management s Responsibility for the Summary Financial Statements the basis described in the note to the summary fi nancial statements. Auditor s Responsibility Our responsibility is to express an opinion on the summary fi nancial statements based on our procedures, which were conducted in accordance with Canadian Auditing Standards (CAS) 810, Engagements to Report on Summary Financial Statements. Opinion In our opinion, these summary fi nancial statements derived from the audited fi nancial statements of Financial Planning Standards Council for the year ended March 31, 2014 are a fair summary of those fi nancial statements, on the basis described in the note to the summary fi nancial statements. Chartered Accountants, Licensed Public Accountants Toronto, Ontario October 17, 2014 Independent Auditor s Report Management is responsible for the preparation of a summary of the audited fi nancial statements on 14

17 Financial Statements Incorporated under the laws of Canada as a corporation without share capital SUMMARIZED STATEMENT OF FINANCIAL POSITION As at March 31 $ $ Assets Current Assets 6,489,027 6,324,711 Investments 2,857,285 2,866,297 Capital assets, net 417, ,922 Intangible assets, net 507, ,569 10,271,385 9,876,499 Liabilities and net assets Current Liabilities 6,282,980 5,933,343 Net assets Internally restricted invested in capital assets 417, ,922 Internally restricted contingency reserve 1,895,636 1,736,487 Unrestricted 1,675,052 1,717,747 Total net assets 3,988,405 3,943,156 10,271,385 9,876,499 15

18 SUMMARIZED STATEMENT OF OPERATIONS AND CHANGES IN UNRESTRICTED NET ASSETS Year ended March 31 $ $ Revenue Certifi cation fees 5,702,253 5,549,516 Examination fees 883, ,300 Investment income 274, ,012 Education 184, ,802 Sponsorships 150, ,000 Other 89,053 46,124 7,285,246 6,795,754 Expenses Standards, education and examination 823, ,280 Communications 760, ,544 Administration 5,382,928 5,189,946 Amortization 197, ,918 Policy and enforcement 75,292 65,567 7,239,997 6,861,255 Excess of revenue over expenses (expenses over revenue) for the year 45,249 (65,501) Unrestricted net assets, beginning of year 1,717,747 1,778,356 Change in internally restricted invested in capital assets 71,205 91,020 Transfer to contingency reserve (159,149) (86,128) Unrestricted assets, end of year 1,675,052 1,717,747 Summarized statement of operations and changes in unrestricted net assets 16

19 SUMMARIZED STATEMENT OF CASH FLOWS Year ended March 31 $ $ Cash provided by (used in) operating activities 770,396 (1,172) Cash used in investing activities (676,146) (605,862) Cash used in financing activities (4,177) (5,142) Net increase (decrease) in cash during the year 90,073 (612,176) Cash, beginning of year 4,658,899 5,271,075 Cash, end of year 4,748,972 4,658,899 Note Applied criteria in the preparation of the summary financial statements are as follows: a) the information in the summary financial statements is in agreement with the related information in the complete financial statements; and b) the summary financial statements contain the information necessary to avoid distorting or obscuring matters disclosed in the related complete financial statements, including the notes thereto. 17

20 University Avenue Toronto, Ontario M5G 2J TF inform@fpsc.ca FPSC.Canada company/financial-planning-standards-council FPVision2020 CFP, Certified Financial Planner and are certification trademarks owned outside the U.S. by Financial Planning Standards Board Ltd. (FPSB). Financial Planning Standards Council is the marks licensing authority for the CFP marks in Canada, through agreement with FPSB. All other are registered trademarks of FPSC, unless indicated Financial Planning Standards Council. All rights reserved.