DefineCertifyEnforcePromote2012–2013 Annual Report

OUR PURPOSE Instil Confidence in the Financial Planning Profession

OUR MANDATE 1. Define Financial Planning2. Certify Professionals 3. Develop and Enforce Standards 4. Promote the FPSC® and CFP® Professional Brands and the Financial Planning Profession

Introduction:

Message to Our Stakeholders

• President’s Message

• Chair’s Message

Board of Directors June 2012–June 2013

Senior Management Team

Profile of the Profession

The Future of the Financial Planning Profession: Registered Candidates

Recognizing the Leaders in the Financial Planning Profession

Section 1: Defining the Profession

Professional Recognition for Financial Planning

Working with Policy-Makers and Regulators

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Section 2: Certifying Professionals

The Path to Certification

New Exam Blueprints

Introduction of a Practice Exam

Release of FPE2® Sample Content

New Computer-Based Testing

CFP Professionals’ Role in Exam Development

Section 3: Developing & Enforcing Standards

Standards and Enforcement

Enforcement Practices & Activities

2012/2013 Complaint Categories

2012/2013 Enforcement Statistics

2012/2013 Trademark Enforcement

2012/2013 Changes to Standards of Professional Responsibility for CFP® Professionals and FPSC® Registered Candidates

Continuing Education Requirements: New FPSC CE Approval Program Launched

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Section 4: Promoting Value

Maintaining Accreditation to the International Organization for Standardization (ISO) 17024 Standard

The Value of Financial Planning: A Three-Year Longitudinal Study

CFP Professionals in the Community

FPSC Events

Vision 2020 Symposium and Canada’s Annual Financial Planning Week (FPW)

FPSC Educator Conference

FPSC Firms Meeting

FPSC Podium Event

Section 5: 2012/2013 Financial Statements

Independent Auditor’s Report

Financial Statements

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MES

SAGE

It is not easy to obtain or maintain CFP® certification, nor should it be. There is no question that this designation is earned—not simply awarded. This is in large part how we fulfill our purpose, which is to instil confidence in the financial planning profession.

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MESSAGE TO OUR STAKEHOLDERSPresident’s Message As President & CEO of Financial Planning Standards Council, I lead a team of experts who work diligently to ensure that those people who choose a career in financial planning, and who seek to attain the highest level of financial planning qualifications available to them in Canada the Certified financial Planner® designation, have the knowledge, skills and abilities necessary to meet the needs of our primary stakeholder: the Canadian public. It is not easy to obtain or maintain CFP® certification— nor should it be. There is no question that this designation is earned—not simply awarded. This is in large part how we fulfill our purpose, which is to instil confidence in the financial planning profession. In fact, the benefits to consumers of engaging a CFP professional were clearly illustrated in the three-year longitudinal study that was commission by FPSC in conjunction with the FPSC Foundation. The study found that those who work with a CFP professional are more likely to report that their financial affairs are on track, they are experiencing greater peace of mind, and that they are closer to achieving some of their life goals.

In this report you will read about some of the enhancements we have made to our exam processes and the introduction of new study aids including the very popular addition of an FPE1® practice exam for candidates. You will also learn about our new FPSC CE Approval Program, the only program in Canada to guarantee CFP professionals approved continuing education credits when choosing their CE activities.

As a non-profit organization, we passionately represent the public interest; however, we do not do this in a

vacuum. Rather, we recognize the importance of balancing the views and perspectives of all stakeholders, including industry, government, regulators, educators and CFP professionals themselves. I’m pleased to report that throughout the 2012/2013 fiscal year we created a variety of opportunities to bring together some of Canada’s brightest and most influential minds, including a “best ever” Educator Conference in May, our largest and most successful Symposium that we hosted during the fourth annual Financial Planning Week in November, a rewarding Firms Meeting held in December and a hugely successful Board of Trade Podium event with industry, planners, regulators and government officials in February.

These structured events, along with the individual meetings we orchestrated with various stakeholders, and our participation in industry consultations initiated by regulators and others, guarantee that we continue to play a central role in leading and distinguishing the financial planning profession.

It has been a pleasure to serve this year. As I reflect back on all that was accomplished these past 12 months, and the progress made by the financial planning profession over the past 17 years, I am exhilarated by the prospects that will present themselves in the future. I’d like to take this opportunity to thank the many CFP professional volunteers who have, through their generous support of FPSC, made a significant contribution to the profession over the past year. It is my pleasure to work with you.

Sincerely, Cary List, CPA, CA, CFP® President & CEO

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Chair’s Message Like the required qualifications and standards for CFP® certification, FPSC’s governance has continued to evolve over the years to match our growing role in the development and oversight of the financial planning profession in Canada. In December we adopted new bylaws, which included a change in the organizational structure that eliminated the original seven-member organization framework established at our inception in 1995. After an extensive governance review, there was recognition that FPSC can best serve its mandate by operating as an autonomous professional body independent of its earlier organizational member model. With this change, FPSC is now governed by 10 individual, independent members who serve as the Directors of the Board. The Board is now made up of representatives of the public and the community of professional financial planners across the country – the CFP professional community and the Pl. Fin community in Quebec. While we are committed to continuing to work closely with the former member organizations and other stakeholders in achieving our common goals, this new structure provides FPSC the autonomy necessary to address the needs of the profession today and well into the future. Following these significant governance changes, the Board of Directors conducted a strategic review of the organization and redrafted its purpose and mandate to clearly state why the organization exists and how we go about accomplishing our goals. From there, we established the five strategic priorities that provide direction to the management team and the initiatives that

they are to undertake in the coming year. These strategic priorities are:

1. Define financial planning and standards, and lead the embedding of those standards in practice;

2. Develop and implement focused strategic outreach;

3. Lead the financial planning public policy debate;

4. Define and implement a full offering along the financial planning continuum; and

5. Build FPSC’s organizational capacity.

It was a pleasure to serve as the Chair of the Board of Directors during such a historic and momentous year. I would like to recognize the contribution of my Board colleagues, the FPSC management and staff, volunteers and all of our CFP professionals who have played a role in FPSC’s tremendous success over this past year by devoting their time, knowledge and energy to the continued development of this profession.

Sincerely, James W. Kraft, CPA, CA, MTax, CFP®, TEP Chair, FPSC Board of Directors

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FPSC BOARD OF DIRECTORS JUNE 2012–JUNE 2013

The FPSC Board is made up of the following seats:

• Six certified financial Planner® professionals

• Three public directors

• One licensed financial planner from the province of Quebec

• Past Chair (ex-officio, non-voting)

• President (ex-officio, non-voting)

Between June 2012 and June 2013, members of the Board of Directors included:

Chair James W. Kraft, CPA, CA, MTax, CFP®, TEP

Vice Chair

Lisa Pflieger, CGA, TEP, CFP®

Past Chair

Debbie Ammeter, LL.B., CFP®

President

Cary List, CPA, CA, CFP® Members

Teresa Black Hughes, R.F.P., CLU, FMA, CIM, CFP®

Cheri Dawn Carey, LL.B.

Doug Carroll, BBA, JD, LL.M (Tax), CFP®, TEP

John P. Charrette, CFP®

Dawn Hawley, R.F.P., TEP, CDFA, CFP®

Gerald Matier

Gilles Sinclair, FICB, Pl. Fin.

Catherine Wood, MBA, CFP®, CLU

Senior Management Team

Cary List, CPA, CA, CFP® President & CEO

Isabelle Gonthier, PhD Director, Certification Process & Examinations

Kimberley Ney, MBA Vice President, Communications & Program Development

Stephen Rotstein, BA, LL.B. Vice President, Policy & Regulatory Affairs & General Counsel

Heather Terrence, CAE Vice President, Operations

Joan Yudelson, MBA, CFP® Vice President, Professional Practice

CFP® professionals are members of an international community of elite financial planning practitioners who are committed to upholding the profession’s most rigorous global standards and putting clients’ interests first.

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PROFILE OF THE PROFESSION

Certified financial Planner® professionals are members of an international community of financial planning professionals who are committed to upholding the profession’s most rigorous global standards and putting clients’ interests first. CFP® professionals work in various settings including small financial planning practices, large financial services firms, banks and other financial institutions, as well as behind the scenes in pension plans and public service organizations.

CFP Professionals by International Region

The global number of CFP professionals grew by more than 8,000 last year (for an annual growth rate of 5.7 percent), from 139,818 at year-end 2011 to 147,822 at year-end 2012.

Americas 58% Asia-Pacific 36% Europe 3% Africa 3%

With almost 17,500 CFP professionals in Canada and nearly 150,000 in 24 countries around the world, CFP certification is the hallmark of global excellence in financial planning.

Demographics of the Profession Male Female

68% 32%

Years in Financial Planning

<56-1011-2020+

10%28%44%18%

CFP Professional Locations in Canada

Ontario British Columbia Alberta Manitoba Saskatchewan Nova Scotia New Brunswick Quebec Newfoundland & Labrador NWT/Yukon/ Nunavut International

52% 19% 14%

5% 4% 2% 1% 1%

1%

<1% <1%

JUNE

3 Age

<34 35-49 50-64 65+

9%43% 42% 6%

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Canadian CFP® Professionals

The following information is culled from the licence renewal forms that Canadian CFP professionals complete each year for FPSC. The information represents reported statistics as at March 31, 2013.

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Top 20 Employers of CFP Professionals (listed alphabetically)

Assante Capital Management BMO Financial Group CIBC Credential Group Desjardins Dundee Wealth Management Edward Jones Freedom 55 Financial FundEx Investments Inc. Investia Financial Services Investors Group IPC Investment Corporation Manulife MD Financial Group National Bank Financial Raymond James Limited RBC Financial Group Scotiabank Sun Life Financial TD Canada Trust

RCs at a Glance:

• Total Number of RCs: 1,145 • Average age of RCs: 36

(Average age of CFP professionals: 49) • 50% of RCs are under 34 years of age • 49 RCs are under 25 years of age

(7 CFP professionals are under 25 years of age)

Gender • 37% of RCs are female

(32% of CFP professionals are female)

Language • 18% of RCs speak Cantonese or Mandarin

(15% of CFP professionals speak Cantonese or Mandarin)

Geography • 55% from Ontario; 22% from BC; 14%

from Alberta• 2 RCs are from the Northwest Territories

The Future of the Financial Planning Profession: Registered Candidates (RCs)

The Registered Candidate (RC) program was established to give candidates official recognition from FPSC® when they reach key milestones along the path to CFP® certification, and provide them with continuous support to reach their ultimate goal. Once candidates have successfully passed their first exam, Financial Planning Exam 1 (FPE1®), in order to remain eligible for CFP certification they must become a Registered Candidate with FPSC and maintain continuous registration until they attain CFP certification. This annual registration process includes agreeing to adhere to the Standards of Professional Responsibility for CFP® Professionals and FPSC® Registered Candidates established by FPSC.

Other Financial Designations Held by CFP® Professionals

CLU CIM PFP CA CHS CGA CFA CSA EPC TEP RFP CMA CSWP

11% 10% 9% 6% 4% 3% 3% 3% 3% 3% 2% 2% 1%

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Recognizing the Leaders in the Financial Planning Profession

FPSC formally recognizes individuals who have helped advance our purpose of instilling confidence in the financial planning profession. The granting of the distinction is based on the nominees

fulfilling at least two of the three criteria, as outlined below:

1. Advancement of FPSC’s vision and mission through volunteering.

2. Advancement of CFP® professional standards.

3. Embodiment of CFP professional standards.

The 2012 fellow of FPSC™ recipients include:

George Athanassakos OntarioSteve Bang Ontario Gerald Bissett Ontario Coleen Clark Ontario Tina Di Vito Ontario Heather Holjevac Ontario Deborah Kraft Ontario James Kraft Ontario Marc Lamontagne Ontario Tony Mahabir Ontario David Nicholson Ontario Sterling Rempel Alberta David Salloum Alberta Susan Stefura Ontario Frank Wiginton Ontario

33%earn over $150,000

22%earn between $100,000 and

$149,999

Business Sectors in Which CFP Professionals Work

Gross Earnings

Banks/Trusts

Securities

Mutual Funds

Entrepreneurial BusinessesInsurance

Credit Unions

Law Firms

Accounting Firms

A World ofOpportunity

DEFI

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The Coalition for Professional Standards for Financial Planners has published a joint statement of principles which will form the foundation for the creation of a proposed regulatory framework for the professionalization of the financial planning industry.

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FPSC’s Distinctive Value Credibility We are the only truly independent, unbiased and internationally recognized organization that sets, assesses against and enforces a singular set of standards for financial planning in Canada.

Reach We are present and accessible within every province and territory, across all financial sectors.

Singular focus We know financial planning and we are only about financial planning.

DEFINING THE PROFESSION Professional Recognition for Financial Planning In the past year, FPSC® President & CEO Cary List was named Chair of the Coalition for Professional Standards for Financial Planners. The group, whose members include the Canadian Institute of Financial Planners (CIFPs), Financial Planning Standards Council (FPSC), the Institute of Advanced Financial Planners (IAFP), and the Institut québécois de planification (IQPF), has published a joint statement of principles that will form the foundation for the creation of a proposed framework for the official recognition of financial planning as a profession. The group will engage government, industry and other stakeholders over the coming months as it formulates a Canadian solution for the profession and for all Canadians.

Working with Policy-Makers and Regulators We continue to participate in a number of important discussions and debates over matters of policy of direct relevance to the financial planning profession.

As a non-profit organization whose prime purpose is to represent the Canadian public interest by establishing, enforcing and promoting appropriately high standards for certification of financial planners, FPSC offers a unique voice on these various issues.

The past year saw FPSC respond to a number of calls for consultation.

In May 2012, we ran an advertorial entitled “Improving Canadians’ Financial Literacy: Our Collective Challenge”

which was featured in The Hill Times, a Canadian publication aimed at government and national decision-makers.

In the Spring of 2012, FPSC submitted comments to the Ontario Securities Commission on its draft statement of priorities for 2012/2013, and provided a submission to the Financial Services Commission of Ontario regarding its draft statement of priorities and strategic directions. In Ontario, close to 9,500 people are either currently CFP® professionals or Registered Candidates. In both submissions we encouraged further consultation and dialogue with FPSC and members of the CFP professional community.

In February 2013, FPSC submitted comments to the Senate Committee on Banking, Trade and Commerce on Bill C-28, An Act to Amend the Financial Consumer Agency of Canada Act. We expressed our concerns around educating the public on what we refer to as “hiring literacy”: FPSC firmly believes that it is the Financial Literacy Leader’s duty to not only guide the collective efforts to raise the financial literacy of Canadians, but also to inform Canadians of how to recognize when they may need professional advice and how to properly seek out the services of a qualified financial professional.

In February 2013 the Canadian Securities Administrator (CSA), the voluntary umbrella organization of Canada’s provincial and territorial securities regulators, provided a forum for stakeholder consultation on the desirability and feasibility of introducing a statutory best-interest duty to address potential investor protection concerns regarding the current standard of conduct that advisors and dealers in Canada owe their clients.

We took the opportunity to share with the CSA our view that, in order to truly protect the interest of Canadians, anyone holding themselves out as providing financial advice beyond that related to product selection should meet certain proficiency and ethics requirements, including specific levels of education and experience. Rather than relying on terminology such as “best interest” or “fiduciary”, in our opinion it should be codified that individuals claiming to offer professional financial advice should be required to put their clients’ interests ahead of their own and demonstrate their financial planning competence through a standardized examinations process; meet prescribed continuing education requirements; and agree to be accountable to a code of ethics, practice standards, and the rules and regulations of a professional body (just as CFP professionals are today). We reiterated a similar message to IIROC when asked for consultation on the use of business titles and financial designations in March 2013.

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The path to becoming a CFP® professional was designed to ensure that candidates are equipped to provide the industry gold standard in financial planning. CFP certification equips candidates with all the skills, abilities and knowledge necessary to be competent and ethical financial planners working one-on-one with clients.

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CERTIFYING PROFESSIONALS The Path to Certification Over the last year, FPSC® undertook a number of enhancements to make the certification process more transparent, more convenient and more efficient.

New Exam Blueprints 2012/ 2013 saw the development and release of new Financial Planning Examination Level 1 (FPE1®) and Financial Planning Examination Level 2 (FPE2®) Blueprints. Blueprints provide candidates on the path to certification with a description of the structure and framework of the two exams: what they include and what they’re intended to assess. As part of the blueprinting process, we reviewed the structure of FPE1, and redefined the purpose statements for FPE1 and FPE2 to ensure that exam content remained relevant and current and continued to measure and evaluate core competencies in a valid and reliable manner.

Introduction of a Practice Exam In January 2013, we launched the FPE1 Practice Exam to help candidates prepare for their first exam on the path to certification. The practice exam includes similar questions to the actual exam, and its content was developed in the same fashion as a true exam; it has the same number of questions as FPE1, assesses the same core competencies, and is administered with the same software that candidates will use when they write the actual exam. Candidates who purchase and complete the practice exam are provided with a diagnostic report that outlines their performance on each of the CFP® Professional Competency Profile categories and provides them with feedback on correct and incorrect answers.

Release of FPE2 Sample Content Based on the feedback from our Educator Working Group volunteers, FPSC now offers CFP professional candidates sample content for constructed-response exam questions for the second and final exam prior to their obtaining CFP professional certification.

New Computer-Based Testing In June 2012 we moved away from paper-based exams and introduced computer-based testing for FPE1 in testing centres across Canada. Both FPE1 and FPE2 are now computer-based, making them more convenient and accessible to candidates across the country. Candidates are no longer required to supply their own laptops.

CFP Professionals’ Role in Exam Development Over 100 CFP professionals donated their time and expertise in the exam development process this past year. This dedicated group of professionals from across the country contributed to the development of examination questions, scoring of FPE2, discussions on the structure of the new blueprints, field testing of FPE1 and FPE2, review and approval of the examinations, and creation of the FPE1 practice exam.

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Safeguarding the integrity of the financial planning profession is among FPSC®’s highest priorities. FPSC establishes, maintains and enforces rigorous standards for CFP® professionals and FPSC Registered Candidates.

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DEVELOPING & ENFORCING STANDARDS Standards and Enforcement Canadians must be able to trust that their financial planners are working in their client’s best interests at all times. The Standards of Professional Responsibility for CFP® Professionals and FPSC® Registered Candidates represent the compilation of four sets of standards: FPSC Code of Ethics (the Code), FPSC Rules of Conduct, FPSC Fitness Standards, and FPSC Financial Planning Practice Standards. It is our job to monitor and enforce these standards, and apply consequences such as barring from the profession those who don’t comply with the FPSC rules of conduct. We have a duty to investigate any allegations of misconduct received about a FPSC Registrant, as well as any matters that may come to our attention which may indicate misconduct.

Enforcement Practices and Activities

As the organization that sets and enforces CFP professional standards of competency, practice and ethics, FPSC vigilantly guards the trust Canadians have placed in CFP professionals and FPSC Registered Candidates. FPSC promptly addresses all concerns that come to our attention, and thoroughly investigates all allegations of misconduct by CFP professionals and FPSC Registered Candidates through a process under the direction of the Enforcement Counsel.

Where CFP professionals have been found to have breached the standards described above, FPSC imposes disciplinary actions ranging from a letter of admonishment to permanent revocation of the right to use the CFP marks. FPSC makes all final disciplinary actions public, in part, by publishing a report on our website. For FPSC Registered Candidates, disciplinary actions can range from a letter of admonishment to expulsion from the Registered Candidate program (thereby preventing them from obtaining CFP certification).

And, because financial professionals often hold more than one credential, FPSC works closely with other credentialing, licensing, and law enforcement agencies and organizations when appropriate.

2012/2013 Complaint Categories

18%

9%

18%

9%

18%

27%

Unsuitable Advice / Competence

Practice Management / Customer Service

Conduct Unbecoming

Non-Disclosure

Misrepresentation

Other - Non Financial

Enforcement Statistics Fiscal Year 2012-2013

Cases under Investigation (as at April 1, 2012)

New Files Opened

Cases Closed

Cases Resulting in Disciplinary Action (Cautions and Hearing Panels)

Cases Still Under Review (As at March 31, 2013)

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Trademark Enforcement Fiscal Year 2012-2013 (Unauthorized Use Cases*)

New Violations Opened

Violations Resolved

Cases Still Under Review (As at March 31, 2013)

119

107

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* Unauthorized use cases involveinstances in which individuals or entities use the CFP® marks without being licensed to do so.

Enforcement Activities FPSC continuously tracks a variety of data and statistics in order to identify and proactively manage emerging trends. In Enforcement, the majority of complaints are received from members of the public.

As anticipated, given the aging demographics of the Canadian population, an increased number of complaints were received from older complainants. A significant number of those complaints highlighted the growing issue of diminished mental capacity, resulting in discrepancies regarding initial instructions and understanding of advice and product limitations, and underscored the importance of rigorous and detailed documentation of meetings, client instructions and advice.

In several other instances, the complaint involved leveraged investing and the purchase of investments with Deferred Sales Charge schedules by older clients. The complaint arose because the client did not fully understand the impact of leveraged investing, and had neither the cash flow to service the loan, nor the timeframe required to “wait out” the DSC schedule, but nevertheless made the investment, relying heavily upon the recommendations of the financial planner. Once again, the importance of documenting all client interactions is highlighted, along with the requirement for CFP® professionals to fully understand and assess both the suitability and the impact of the particular investment strategy they are recommending to their clients. This is particularly true for senior clients who are in or near retirement, and who are often living on a fixed income.

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Continuing Education Requirements: New FPSC CE Approval Program Launched

FPSC introduced the FPSC CE Approval Program—the only program in Canada to guarantee CFP professionals approved CE credits when choosing their CE activities. By choosing a CE credit that has been approved by FPSC, CFP professionals can be assured that it qualifies as a Verifiable CE Activity and know immediately how many credits will be earned.

FPSC-approved CE activities are provided by a number of well-known industry educators, and cover:

• All financial planning components (Financial Management, Investment Planning, Retirement Planning, Tax Planning, Risk Management and Estate Planning);

• All levels of complexity (Fundamental, Intermediate and Advanced);

• All delivery preferences, including self-study, online and in-person.

2012/2013 Changes to Standards of Professional Responsibility for CFP® Professionals and FPSC® Registered Candidates The following summarizes the changes to the Fitness Standards and the Disciplinary Rules and Procedures (DRP), which were approved by the FPSC Board of Directors this past year:

• Complaints to FPSC must now be made within sixyears of the date that the complainant knew or ought to have known of the events giving rise to the complaint.

• A CFP professional or Registered Candidate whois the subject of a complaint, and who fails to file a response within 30 days, or otherwise co-operate with an investigation, may now be subject to an administrative suspension of 30 days or until such time as the response is provided. Such administrative suspension will be determined by the Chair of the Enforcement Policy Committee.

• The provisions of the Fitness Standards have beenrevised to make bankruptcy a presumptive bar, rather than an absolute bar to certification. This means that the bankruptcy will bar an individual’s certification, subject to the filing of a petition for reconsideration. This provides FPSC with the discretion to review the circumstances, and to make a determination on the merits of the particular situation.

• Effective April 1, 2013, an enforcement hearing feebecame payable by the FPSC registrant for hearings before a Hearing Panel of the EPC. If the matter is dismissed by the Hearing Panel, the fees will be refunded in full.

• The Policy on the Publication of DisciplinaryInformation and the Policy on Disclosure of Investigations have been added to the DRP as Appendices A and B respectively, in order to consolidate the enforcement provisions and policies to which an FPSC Registrant must attest to have read and abide by, as part of the initial and annual certification.

“ “In November 2009, FPSC® was one of the first certification bodies in Canada to receive accreditation to the ISO 17024 standard from the Standards Council of Canada (SCC), Canada’s national ISO accreditation body. The accreditation recognizes our commitment to quality standards and best practices.

PROM

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PROMOTING VALUE Maintaining Accreditation to the International Organization for Standardization (ISO) 17024 Standard

The international standard to which FPSC is held accountable, ISO 17024, has been developed with the objective of achieving and promoting a globally accepted benchmark for organizations providing certification. In order to maintain the accreditation, we must

continue to adhere to the standards in ISO 17024 and be audited annually in all areas of our certification program. The results of our SCC audits thus far have been very positive. ISO accreditation has provided us with the tools to identify opportunities for continuous improvement. Just as we believe in promoting best practices in the financial planning profession, accreditation to ISO standards demonstrates our commitment to a “best practices” approach internally as a certifying body.

The Value of Financial Planning: A Three-Year Longitudinal Study Canadians understand how closely linked our financial goals are to our life goals, but never before has there been an in-depth investigation undertaken in Canada to define and quantify those measures. In partnership with the FPSC Foundation, FPSC embarked on a three-year study that involved the participation of almost 15,000 Canadians across the country to do just that. The study was designed to evaluate and better understand the value proposition of financial planning. We wanted to determine if there were marked differences in professed well-being

between those who have a comprehensive financial plan, those who have received limited, targeted advice, (such as insurance advice, investment advice, etc.) and those who have received no advice. As well, we wanted to quantify the impact of financial planning services offered by professionals who hold certified financial Planner® certification compared to non-certified financial advisors.

The study confirmed that Canadians who engaged in comprehensive planning with a CFP® professional reported significantly higher levels of financial and emotional well-being than those who do no planning or limited planning. Those with comprehensive plans feel their financial goals and retirement plans are more on track; their ability to save has improved in the past five years; and they are more confident that they can handle inevitable bumps in life.

The Value of Financial Planning study is the first step in understanding the emotional and financial value Canadians have realized through financial planning with a CFP® professional. We now know that there is a strong positive correlation between comprehensive planning with a CFP professional and an individual’s perceived

emotional and financial well-being. The next step is to measure the actual value of this benefit and its impact on society. To this end, FPSC has passed the findings of the study to the FPSC Foundation, which will be actively working to determine the most appropriate research methodology required to get to the heart of the question.

Some highlights of the findings included:

78% VS. 54%

73% VS. 63%

70% VS. 61%

of Canadians who worked with a CFP professional were more likely to report their financial affairs were on track than those dealing with non-certified planners.

of Canadians using a CFP professional believed that financial planning had helped them have greater peace of mind than those working with a non-certified planner.

of Canadians who engaged a CFP professional believed they were closer to achieving some of their life goals as a result of planning than those who were working with non-certified planners.

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CFP® Professionals in the Community

FPSC worked with a number of community groups to support their efforts throughout the year. In addition, CFP professionals participated in a number of community economic development activities that were facilitated through FPSC this past year. Some examples include the following:

40 CFP PROFESSIONALS

volunteered their time to the Community MicroSkills Development Centre, offering financial literacy seminars to women with low incomes (primarily newcomers to Canada) who were working toward starting their own small business or micro enterprise.

CFP Professionals volunteered their time with various branches of the Toronto Public Library to offer financial literacy seminars to the 157 attendees.

CFP professionals volunteered in Junior Achievement Canada’s Dollars with Sense program, providing youth with skills to make wise personal and financial decisions.

CFP professionals volunteered to be mentors for the Children’s Aid Society of Ottawa’s Financial Literacy Interdependence Program, an after-school program that provides at-risk youth between the ages of 15 and 18 with basic financial education.

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FPSC Events

Vision 2020 Symposium and Canada’s Annual Financial Planning Week (FPW)

FPSC and the Institut québécois de planification financière (IQPF) first introduced Financial Planning Week back in 2009. The

objectives that were identified then have remained constant through the years:

• Raise awareness of the importance of financialplanning and provoke a call to action to all stakeholders for the benefit of all Canadians;

• Encourage industry to promote the value of financialplanning to their clients;

• Provide a platform for financial planning professionalsto discuss the necessity and progress of the financial planning profession;

• Encourage consumers to take positive planning action;

• Promote the benefits of comprehensive financialplanning to Canadians, other planners, financial services providers and regulators; and

• Differentiate the nature of financial planning from thatof product-oriented financial advice.

FPW 2012 was celebrated between November 19 and 25, with events and programs held in communities across Canada. Of note was the Vision 2020 Symposium entitled “Enduring Challenges, Fresh Opportunities.” FPSC hosted a number of accomplished professionals who offered their views on a variety of topics related to the profession.

In addition to an inspirational Symposium, FPSC hosted a community challenge that saw CFP® professionals across Canada promoting financial planning in their local communities. FPSC was pleased to award $6,000 in challenge honorariums to CFP professionals in various regions of the country to assist them in their work.

FPSC Educator Conference

FPSC hosted its sixth annual Educator Conference in May. The two-day event, entitled “Advancing the Education of Future CFP Professionals,” included discussions of topics relevant to our educational partners that bear the responsibility of preparing candidates for the rigours along the path to certification.

FPSC Firms Meeting

FPSC hosted a Firms Meeting in December 2012 entitled “Designation Strategies for Growth.” Twenty-seven senior leaders in the financial services sector attended and participated in the event. Nineteen firms were represented including the big six banks, credit unions, insurance, fee-

for-service financial planning firms, and fund companies. Representatives from a variety of organizations discussed the designation strategies within their firm.

Increasingly, the tone from the top of the firms is that financial planning and advice are key, that there is recognition that people who are working with a financial planner are more confident in their financial futures and attaining their financial goals, and that there is strong CFP mark recognition as the gold standard in financial planning.

FPSC Podium Event

In February 2013, FPSC sponsored a Podium Event at the Toronto Region Board of Trade entitled “The Future of Financial Planning in North America: A Candid Look at the Trends and Growth of Financial Planning in Canada and the United States.”

Addressing a diverse audience that included CFP professionals, various financial product regulators, government representatives and other industry leaders, the event was moderated by financial affairs columnist Preet Banerjee. Preet sat down with FPSC President & CEO Cary List, and Kevin Keller, CEO of the Certified Financial Planner Board of Standards, Inc., (our U.S. counterpart), and explored a number of topics pertaining to the role financial planning plays in the broader financial industry, the current and anticipated demand for financial planning services, and the future of the profession on both sides of the Canada/U.S. border.

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FINANCIAL STATEMENTS

Independent Auditor’s Report

To the Members of Financial Planning Standards Council

The accompanying summary financial statements, which comprise the summary statement of financial position as at March 31, 2013, the summary statements of operations, changes in unrestricted net assets and cash flows for the year ended, are derived from the audited financial statements of Financial Planning Standards Council for the year ended March 31, 2013. We expressed an unmodified audit opinion on those financial statements in our report dated July 31, 2013. Those financial statements, and these summary financial statements, do not reflect the effects of events that occurred subsequent to the date of our report on those financial statements.

The summary financial statements do not contain all the disclosures required by Canadian accounting standards for not-for-profit organizations (ASNPO). Regarding the summarized financial statements, therefore, is not a substitute for reading the audited financial statements of Financial Planning Standards Council.

Management’s responsibility for the summary financial statements

Management is responsible for the preparation of a summary of the audited financial statements on the basis described in the note to the summary financial statements.

Auditor’s responsibility

Our responsibility is to express an opinion on the summary financial 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 financial statements derived from the audited financial statements of Financial Planning Standards Council for the year ended March 31, 2013 are a fair summary of those financial statements, on the basis described in the note to the summary financial statements.

Chartered Professional Accountants, Licensed Public Accountants Toronto, Ontario November 8, 2013

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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

Investments

Capital assets, net

Intangible assets, net

Liabilities and net assets

Current Liabilities

Long-Term Liabilities

Net assets

Internally restricted invested in capital assets

Internally restricted contingency reserve

UnrestrictedTotal net assets

2013 2012

$ $

6,324,711 7,153,503

2,866,297 2,145,828

488,922 579,942

196,569 266,797

9,876,499 10,146,070

5,933,343 6,133,236

- 4,177

488,922 579,942

1,736,487 1,650,359

1,717,747 1,778,356

3,943,156 4,008,657

9,876,499 10,146,070

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SUMMARIZED STATEMENT OF OPERATIONS AND CHANGES IN UNRESTRICTED NET ASSETS

Year ended March 31

Revenue

Certification fees

Examination fees

Investment income

Education

Sponsorships

Other

Expenses

Human Resources

Standards, education and examination

Governance

Marketing and consumer affairs

Administration

Amortization

Policy and enforcement

Excess of expenses over revenue for the year

Unrestricted net assets, beginning of year

Change in internally restricted invested in capital assets

Transfer to contingency reserve

Unrestricted assets, end of year

2013 2012

$ $

5,549,516 5,468,118

771,300 625,829

171,012 158,728

133,802 60,705

124,000 59,500

46,124 16,473

6,795,754 6,389,353

3,665,917 3,360,984

950,064 1,106,999

661,857 565,836

652,680 621,063

649,177 701,849

230,918 246,076

50,632 90,975

6,861,255 6,693,782

(65,501) (304,429)

1,778,356 2,065,784 91,020 52,834

(86,128) (35,833)

1,717,747 1,778,356

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SUMMARIZED STATEMENT OF CASH FLOWS

Year ended March 31

Cash provided by (used in) operating activities

Cash provided by (used in) investing activities

Cash used in financing activities

Net increase (decrease) in cash during the year

Cash, beginning of year

Cash, end of year

219,826 (278,583)

(1,172) (238,740)

(5,142) (4,696)

(612,176) (522,019)

5,271,075 5,793,094

4,658,899 5,271,075

NoteApplied 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.

2013 2012

$ $

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September 2013

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