Management Discussion & Analysis

32

The following is the management discussion and analysis of the financial condition and results for The Financial Advisors Association of Canada (TFAAC).

The audited consolidated financial statements of TFAAC show current year revenues exceeding expenses by $315K that includes $291K of unrealized gains on investments and total assets of $19M.

The Advocis Protective Association (APA), with continued success has revenues exceeding expenses by $275K and a 13% increase in certificates. As sponsor of the APA errors & omissions program, the APA continues to be well capitalized and holds sufficient financial resources to meet forecasted obligations.

Advocis Broker Services Inc. (ABS), a for-profit wholly-owned subsidiary of TFAAC, reported a profit from operations of $132K, more than double the net income in 2018. The basis of ABS’ continued success is the increase in revenue as the brokerage continues to grow.

The Institute, TFAAC’s standards and designations arm has revenues exceeding expenses by $631K. The Institute successful year is a result of increased designation holders and CE accreditation services.

The Advocis fund supports advocacy initiatives, education, the local chapter network and general operations. While membership revenue remained flat compared to 2018, growing membership remains a priority. Operating expenses increased from 2018 in support of various ongoing advocacy initiatives, new and updated education programs, a refreshed Advocis brand and website as well as infrastructure updates in supporting the professionalism of financial advisors.

The chapter-local activity fund is the financial position of the 40 local chapters across Canada, delivering quality education and networking programs in their local communities. In 2019, local chapters contributed $89K to TFAAC’s overall consolidated result.

GAMA, the only association in Canada for leaders who build the financial services industry, contributed $56K. GAMA continues to strengthen their financial position moving their fund in a positive result in 2019.

2019 was a year of great successes, challenges and capital investment to ensure the association meets the needs of professional advisors and planners in Canada now and in the future.