FP Canada published on Aug. 11 its integrated annual report for 2019-2020, providing an overview of key accomplishments achieved during its first full year of operations.

The association says a record number of candidates challenged FP Canada’s certification exams during the year. In total, 3,181 candidates wrote the Certified Financial Planner (CFP) and Qualified Associate Financial Planner (QAFP) exams, an increase of more than 50 per cent relative to the year prior.

Success on the policy front

Calling 2019-2020 a monumental year for the organization, the association says it has experienced significant success on the policy front, with new titling legislation for financial planners passed in Ontario and introduced in Saskatchewan. In addition to providing fiscal results, FP Canada also publishes its president’s list of top CFP exam candidates in the report and outlines new post-secondary education requirements for CFP candidates, beginning in April 2022. (Effective April 2022, new CFP applicant must hold a post-secondary degree. New applicants for QAFP certification must hold a post-secondary diploma.)

For the year ended March 31, 2020, FP Canada had a surplus of $1.5-million, up from $518,000 in 2019. Revenue grew from $9.9-million in 2019 to $12.5-million in 2020. FP Canada says revenue comes primarily from certification fees, examination fees and professional education program fees. “To mitigate the risk of unforeseen circumstances, FP Canada targets holding internally restricted and unrestricted net assets equal to six months’ operating expenses. Current surpluses account for less than three months’ operating expenses as FP Canada has invested the vast majority of its accumulated surplus in recent years in new program development and infrastructure upgrades,” says the report. “Management expects professional education program revenue to grow dramatically in the coming fiscal year.”

Disciplinary activity

Published alongside FP Canada’s annual report, the organization has also published the FP Canada Standards Council Report for 2019, which details the oversight role the standards council plays, and provides an overview of complaint intake and disciplinary activity that occurred in 2019.

During the year the standards council received 64 complaints. Of those, 37 were referred to the conduct review panel, 11 complaints were referred to hearing panels and 12 disciplinary hearings were held during the year. Top five public complaint allegations in 2019 included complaints about diligence, forgery, suitability, loyalty and professionalism. Top complaints initiated by the standards council itself include allegations of suitability, financial planning advice, loyalty, borrowing to invest and client service failure. The report also outlines certification program changes, and the standards council’s enforcement process.

To learn more, consult the report here.