FORUM Magazine - May 2024

INSIGHTS FROM ICONS

Jim Rogers and George Sigurdson share industry wisdom

PUTTING ADVISOR COSTS IN PERSPECTIVE

A Wealth of Wisdom

CARROLL

WARK

FORUM

Never Be Unprepared

Last August, while visiting Montreal, my husband and I tagged along with my 83-year-old mother-in-law to an appointment with her bankbranch-based financial advisor. Mostly, we needed to get a sense of whether she could afford to move into an assisted living facility. Her Parkinson’s disease was progressing, making it increasingly difficult for her to do essential tasks, such as unlocking her front door, zipping up her boots, and using the microwave.

The advisor took the conversation a step further, asking if her will was up to date. We’re grateful he did. It turned out her most recent will left everything to her husband, who passed away in 2003, and her executor had since moved into longterm care and couldn’t have taken on that role. The advisor connected my motherin-law to a notary, and she created a new will in the fall — one that made sense for her current circumstances. At the same time, she arranged for my husband to have power of attorney over her financial accounts so he could more easily take care of paying her bills.

PUBLISHER: Peter Wilmshurst advocisforum@gmail.com

EDITOR: Alison MacAlpine alison@amcommunications.ca

COPY EDITOR & PROOFREADER: Alex Mlynek

ART DIRECTOR: Giselle Sabatini gisellesabatini@rogers.com

ADVERTISING: Peter Wilmshurst advocisforum@gmail.com Tel: 416-766-4273 Fax: 416-760-8797

TFAAC BOARD OF DIRECTORS

CHAIR

Eric Lidemark, CFP, CLU, CH.F.C., CHS

PAST CHAIR

Rob Eby, CFP, RRC

VICE CHAIR/SECRETARY

Stephen MacEachern, CFP, CLU, CHS, CH.F.C.

VICE CHAIR/TREASURER

John Hamilton, CLU, FEA, CPCA

DIRECTORS AT LARGE

Arun Channan, MASc, MBA, CSP, CFP

Kelly Gustafson

Harris M. Jones, CPA, CA, CFP, CLU, CH.F.C., TEP

Curtis Kimpton, CLU, CIM, RRC

CHAIR, INSTITUTE

Ejaz Nadeem, MA, CFP, CLU

CHAIR, CLC

Leslie Carpenter, CFP, CLU, CIM

PUBLIC DIRECTOR

Sara Gelgor, LLB, LLM, MBA, ICD.D

INTERIM CEO

Neither we nor the advisor anticipated what came next. In January, my mother-in-law experienced a steep decline in health. We rushed back to Montreal when she was admitted to hospital. We arranged for caregivers and worked with the hospital to get social services in place for her planned discharge date. But she lapsed into unconsciousness, first for a couple of days and then for the last time. She passed away on March 1.

We’re still reeling, but everything that happened drove home the point that unanticipated isn’t the same as unprepared. We didn’t expect things to progress so shockingly quickly, but thanks to the advisor’s critical question about the will — out of the scope of the main purpose of that August meeting — the estate should settle more quickly and simply. It’s a good example of the kind of uncomplicated but critical work many advisors do day in and day out that makes a big difference to the families they serve.

Rogers and George Sigurdson: that sales come from meeting client needs, rather than from a clever pitch. In other words, put client needs first and success follows. It’s a premise Rogers and Sigurdson suggest hasn’t changed despite the myriad other ways the industry has evolved.

In this issue, you’ll also find Sandy Pollack’s tips on addressing the impact of family dynamics on business succession planning (page 5) and Bryce Sanders’s guidance on responding to prospects who suggest you’re too expensive (page 6). And we welcome Mike Todd of Transform Philanthropy as Strategic Philanthropy columnist. As he points out, “Addressing this important area can lead to significant rewards for clients and advisors.”

Charitable planning is yet another way advisors can add value while building thriving practices.

***

Congratulations to The Personal Coach, whose experts contribute regularly to FORUM and eFORUM, on its first book, Mastering Your Momentum: Close the Gaps in 15 Critical Areas of Your Financial Advisory Business to Achieve Confidence, Focus, and Freedom.

Harris Jones, CPA, CA, CFP, CLU, CH.F.C., TEP

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FORUM EDITORIAL ADVISORY BOARD

LEONY DEGRAAF HASTINGS, CFP, EPC deGraaf Financial Strategies

NICHOLAS LANDRY, CEBS, CHS, RCIS

BFL Canada - CSI

IZUMI MIKI-MCGRUER, CFP, CLU, CH.F.C., CHS

Freedom 55 Financial

MICHAEL SUSKA, CFP, CHS

Helkie Financial & Insurance Services Inc.

OPENERS

Fodder for the Water Cooler

ADDRESSING THE IMPACT OF FAMILY DYNAMICS ON BUSINESS SUCCESSION PLANNING

BY SANDY POLLACK

When it comes to transitioning a family business to the next generation, the impact of family dynamics cannot be overstated. Every week, there is a sensational story in the news regarding family conflicts within a family business enterprise and the unfortunate repercussions for the family, the business, and its employees. Here are five key considerations as you work with clients to ensure a smooth succession.

1. View the family as a system

A family system can destabilize when there are unresolved conflicts or strained relationships. These might stem from disagreements over business decisions, personal issues, or historical family dynamics. For instance, if family members hold grudges or harbour resentment, it can affect their ability to work together effectively, lead to conflict, and, depending on the magnitude of wealth involved, lead to unnecessary litigation that may threaten the family business enterprise.

2. Align values and expectations

Misalignment of values and expectations can create significant challenges. Each family member may have different priorities, beliefs, and visions for the business. To mitigate this, design a comprehensive family governance plan that articulates the core values that guide the business. Explicitly outline expectations for family members’ roles, responsibilities, and behaviour within the business. Address issues such as nepotism, meritocracy, and

professional conduct. Regularly communicate and reinforce these expectations to maintain clarity.

3. Differentiate between equal and equitable relationships

Confusion may arise when family members expect equal treatment during succession planning. However, equitable distribution considers individual needs and contributions, as well as business needs. If one sibling has actively participated in the business while another hasn’t, equal shares may not be fair. Designing a share structure and dividend policy that ensures sound decision-making for all stakeholders is paramount.

4. Encourage effective communication

Family members must actively listen to one another, understand differing viewpoints, and resolve conflicts constructively. Encourage family members to express their thoughts and emotions openly, but respectfully. Miscommunication or lack of effective dialogue can lead to misunderstandings and family conflict, and hinder the succession process.

5. Assess the founder’s willingness to let go

Founders often struggle to let go because their identity and financial security is intertwined with the business. They may also fear losing purpose or relevance and that their children do not possess the necessary leadership and stewardship skills to run the business. Acknowledging this fear, addressing the gaps that need to be resolved, and gradually transitioning leadership can ease the process.

A family’s business success relies not only on financial strategies, but also on the well-being of its members. Open dialogue, professional advice, and a shared commitment to the family’s and business’s long-term success can help navigate family dynamics during succession planning.

Strong families make strong businesses, not the other way around.

SANDY POLLACK, CFP, CLU, TEP, FEA, MFA-P, founder of Trimaran Advisory Group, is an Ottawabased estate planner, family business advisor, and author of Don’t Leave a Mess: How to DisasterProof Your Family Legacy. She specializes in helping business owners make wise choices to protect what they have worked so hard to build.

BUILDING YOUR BUSINESS

BY BRYCE SANDERS

RESPONDING TO PROSPECTS WHO

SUGGEST YOU’RE TOO EXPENSIVE

Full-service firms are often considered full-priced by prospects. Advisors often hear the objection, “You’re too expensive.” How can you respond effectively to that statement?

Importantly, resist the temptation to be confrontational. If you’re talking to a lawyer, your first instinct might be to say, “What do you charge per hour?” Don’t do it. Also, stop yourself from countering, “You get what you pay for.” Neither comment is likely to bring a prospect around to your way of thinking.

Try these five approaches instead

1. Look at the big picture. Prospects might think your fees on managed money in separately managed accounts are high. At the same time, they may own individual bonds and guaranteed investment certificates in accounts without fee-based pricing. What is your charge as a percentage of all the assets where you are providing advice? What about assets held at other financial institutions? Do you advise on them, too?

2. Compared to what? When prospects say, “You’re too expensive,” what alternative are they considering? Let’s assume it’s a no-load mutual fund. They are not free of fees.

CPP CONTRIBUTIONS UP IN 2024 AND 2025

Contributions to the Canada Pension Plan (CPP) rose for most employees, employers, and self-employed individuals on January 1, 2019, to fund increased retirement income through the CPP enhancement. In 2024 and 2025, CPP contributions are increasing further on income that falls in between the year’s maximum pensionable earnings (YMPE) and the year’s additional maximum pensionable earnings (YAMPE).

They still have management and administrative costs. If they name the fund, it’s easy to find those fees. Compare your fees expressed as a percentage to those fees expressed as a percentage. Now, make the case for all the services you deliver that amply justify the price difference.

3. Pay as you go. Let’s agree that investing should be approached from a long-term perspective. However, it may be worth pointing out that with managed money or assetbased pricing, clients only pay fees for the time they’re using the service. They stop paying fees at the point they decide to leave the program. “Pay-as-you-go” pricing can sound very attractive.

4. Consider tax. It’s not free to live in this country. Canadians pay income tax. Ask how much prospects pay, expressed as a percentage. It’ll be a pretty high fee. And is that a onetime, front-end load charge? No! It’s an annual charge! How many people do you know who choose to move to a “no-load country”? Very few. Try naming some of those countries! Why do Canadians pay these high fees? Because they think the benefits of living here are worth it.

5. The ATM perspective. Suppose your charges are 1% annually. What does another financial institution’s bank machine charge you to withdraw $100? Maybe $4. That’s a 4% charge! Will the ATM give you a year of service going forward? No. But you, the advisor, do.

Sometimes, providing prospects with a fresh perspective is all that’s needed need to counter the objection “You’re too expensive.”

Business Solutions Inc. and author of Captivating the Wealthy Investor. He provides HNW

In 2024, the YMPE is $68,500 and the YAMPE is $73,200. Employees and employers will each contribute 4% of the amount earned between those two earnings ceilings toward second additional CPP contributions (CPP2). Self-employed individuals will contribute 8%. Base and first additional CPP contributions combined remain at 5.95% for employees and employers, or 11.9% for self-employed individuals. The YAMPE is about 7% higher than the YMPE in 2024, and will be about 14% higher than the YMPE (announced in November 2024) in 2025 and subsequent years. Find more information on the Canada Revenue Agency website (search for “CPP enhancement”). —Alison MacAlpine

BRYCE SANDERS is president of Perceptive

DID YOU KNOW?

LIFE INSURANCE SALES IN 2023

The Canadian life insurance industry experienced a record-breaking year in 2023, with $1.86 billion in new annualized premiums — the highest sales achieved since LIMRA’s Canadian Individual Life Insurance Sales Survey launched in 1993. Rising fastest of all was whole life insurance, where new annualized premiums in 2023 were 10% higher than in 2022, with premiums accounting for more than twothirds (68%) of the overall Canadian life insurance market. Participating whole life insurance represented 88% of the whole life insurance market and saw new annualized premiums in 2023 rise 12% compared to the previous year.

SOURCE: WWW.LIMRA.COM/EN/NEWSROOM/NEWS-RELEASES/2024/LIMRA-RECORD-YEAR-FOR-CANADIAN-LIFE-INSURANCE-SALES-IN-2023/

FINANCIAL RESOLUTIONS FOR 2024

It may be time to check in with clients on how they’re doing with their 2024 financial resolutions. New Canadians, in particular, are very likely to have made one — 97% of them have — but more than half (59%) of established Canadians have, too.

SOURCE: HTTPS://STORIES.TD.COM/CA/EN/NEWS/2024-01-18-INFLATION-AND-COST-OF-LIVING-SEEN-AS-2024-27S-BIGGEST-FINANCIA

Help Your Clients With a DAF

Exploring the advantages of using a Donor Advised Fund (DAF) for charitable giving.

USING A DONOR ADVISED FUND

Making a significant charitable donation is a big decision, one that often needs time. If your client feels pressured to rush the giving process, a public charitable foundation that offers donor advised funds might be the solution.

Abundance Canada offers donor advised services to help your clients make a charitable donation quickly and easily. A charitable tax receipt is issued at the

time of the donation to offset taxes, and then your client can take the time they need to best determine which charitable causes they wish to support.

By separating the donation itself from the actual distribution to charity, your client will have time to carefully consider the charities, the amounts, and the timing of the gifts. They can even be anonymous if they wish.

Your client will also have the personalized service of one of Abundance Canada’s Gift Planning Consultants. For 50 years Abundance Canada has been helping individuals and families build customized giving plans for the causes they care about.

Give us a call We would love to help you too

A Wealth of

Wisdom

Industry legends and longtime Advocis members Jim Rogers and George Sigurdson share their thoughts with Alison MacAlpine on how the business is changing and what it takes to be a successful advisor

Jim Rogers (left) and George Sigurdson (right)

On a recent trip to New Zealand, flying into Queenstown, George Sigurdson and his wife braced as strong winds forced the pilot to pull up at what felt like the last possible second. They watched the ground fall away as the plane rose to 10,000 feet before circling and coming in for another attempt. It was a relief to land, and as Sigurdson stepped off the plane, he stopped to thank the pilot for getting them safely onto firm ground.

“He looked at me and he says, ‘95% of the time, my job is on autopilot. I get paid for the 5%.’” Sigurdson recalls.

The founder and president of Winnipeg-based Sigurdson Financial Group Inc., whose team of 10 is responsible for more than $100 million in assets under administration, immediately saw a parallel to his clients’ financial lives — mostly on autopilot — and the value advisors bring by spurring them to take care of that critical 5%. “Our job is to help people take action, and yes we get paid, but in the long run they win.”

That’s an aspect of the business that hasn’t changed in the half-century Sigurdson has been practising. But many other things have evolved. Most notably, industry siloes have coalesced and traditional agency-based pathways to training and mentorship have all but vanished.

As a result, today’s advisors need a much broader knowledge base so they can build holistic plans for clients using the best available tools. At the same time, they’re largely on their own seeking out the information and connections they require to succeed.

In this environment, professional associations like Advocis have a role to play that goes beyond advocating with government for policies that benefit members and Canadians as a whole. Now, critical functions also encompass facilitating advisor education and networking.

As Sigurdson puts it, “The industry has gone from agencies [offering] training to today when there’s nowhere to go for young people to get into the business. The thing that scares me the most about our business right now is there’s no easy entry … It’s really hard, which is why [advisors] need Advocis even more.”

NO ADVISOR IS AN ISLAND

Even back in the day, professional associations played a crucial role in advisors’ success. Networking through Advocis (then the Life Underwriters Association of Canada), including as a founding

Lessons from Rogers and Sigurdson

DEVELOP YOUR OWN SHORTHAND

“Ask good questions, open-ended questions, listen to what the answers are, and commit them to memory. … I would put down one word in my notepad, just one word, and they might have given me 50. Then later, after the meeting was over, I would dictate everything that was said and done.”

— Jim Rogers

DO THE RIGHT THING

“Take money out of the equation and do the right thing … and make every decision as if you put the answer on the front page of the newspaper for everybody to look at. If you can do those two things with honour, the business is easy.”

—

George Sigurdson

LISTEN MORE THAN YOU SPEAK

“I’m one of those learners who learns by exposing myself, and my ears in particular, to other people who I see are talented or I’ve read about being talented. … I’m a great believer in the ‘two ears, one mouth’ rule, where you’re supposed to use them in those proportions.”

— Jim Rogers

STICK IT OUT DURING THE LEAN YEARS

“Too many people give up too easily. … You have probably 10 years in the business where you’re underpaid, and then you’re overpaid the rest of your life [and] you don’t look for referrals — referrals look for you every single month.”

— George Sigurdson

member of the Conference for Advanced Life Underwriting in 1991 and longtime Century Initiative member, allowed Sigurdson to get to know peers in every major city across the country. Meanwhile, membership on the Million Dollar Round Table (MDRT) introduced him to people from all around the world. On the New Zealand trip, an MDRT member took him and his wife out to dinner.

“People think that they can be islands to themselves, but they can’t be,” Sigurdson says. “If we don’t have strong associations, we’ll just be a bunch of individual islands floating around in the world of finance and we’ll have no say — and when the government makes changes, we won’t have any voice.”

Jim Rogers, who founded Vancouver-based RGF Integrated Wealth Management and built it into a thriving enterprise before his retirement in 2008, also benefited from networking opportunities with peers through Advocis, the Canadian Association of Insurance and Financial Advisors (CAIFA), and as a Top of the Table member of MDRT. He attended industry conventions. He joined study groups. And he took on leadership positions, including two terms as Advocis chair (1999 and 2000), two terms as CAIFA chair (2000 and 2001), and one term as MDRT president (2007).

Overall, he made a point of surrounding himself with people he considered to be smarter than himself or more capable in areas where he wasn’t an expert.

“You can’t grow unless you’re getting input from the people that are better than you,” Rogers says.

Like Sigurdson, Rogers doesn’t think the fundamentals of what it takes to be a successful advisor have changed over the years — that boils down to needs-based selling. However, he worries that as divisions between insurance, banking, trust companies, and securities have blurred, there is less quality control for advisors, who can acquire registration and licensing to sell anything and everything without being held to a consistent fiduciary standard.

“I always urge young men and women [to] make sure that the words and the music go together. If you are a financial advisor, show [clients] that somebody else thinks you are — notably, an organization that provides a meaningful designation,” says Rogers.

“I’m frustrated [having a fiduciary status] hasn’t evolved as a requirement. … Clients’ or prospective clients’ needs supersede your own and you need to act that way.”

WORK HARDER AND SMARTER

“People who work harder do better, people who work smarter do better, and people who do both do the best. … Work as hard for yourself as you would for somebody else. That is eight to 10 hours a day. If you can’t do that, then you should change jobs.”

— Jim Rogers

PRIORITIZE CLIENT CALLS AND MEETINGS

“You have to work half-days — that’s 12 hours. … I have always made 20 phone calls a day, and I have anywhere for four to five appointments every day.”

— George Sigurdson

BECOME A TRUSTED SOURCE FOR JOURNALISTS

“I made a lot of super media friends. … I would provide them with material that would allow them to write a piece. Sometimes they mentioned my name. Other times they did not. I didn’t worry about that. I knew it would sort itself out.”

— Jim Rogers

PRACTISE WHAT YOU PREACH

“People don’t buy because they believe. People buy because they believe that you believe. …

Between myself and my children and grandchildren, I pay for 59 different insurance policies. … I tell my wife I own so much life insurance that she’s got to promise to look sad at my funeral.”

— George Sigurdson

DON’T GUESS WHAT CLIENTS WANT

“At the beginning of a meeting … I would say, ‘I’ve got some idea as to what I should talk with you and your spouse about, but I’m not absolutely sure. You, as a couple, had a chat with each other before you came here. … Tell me, if this meeting is to be successful as you see it, what has to happen?’

… I’d often find, especially early on in my career, what they told me is not what I was planning to do. I would have run off in the wrong direction.”

—

Jim Rogers

DON’T OVERCOMPLICATE A SIMPLE BUSINESS

“The basics of our business have never changed. Yes, we have certain products that have changed … but the actual basics of delivering money when it’s needed the most are never going to change, ever.”

— George Sigurdson

FIND YOUR PASSION

“Few people — I’d say less than 10% of people — have a real passion for what they do every day. Those who do, do well and they’re happy.”

— Jim Rogers

“When you work for passion, you’re always going to be overpaid. … I feel like I’ve never gone to work … I just visit my friends from morning till night.”

— George Sigurdson

BY DOUG CARROLL

Trust Reporting

Does that joint account have to be reported to CRA?

Atrust is an arrangement in which a trustee is the legal owner of property, with one or more others who have beneficial rights to use the property and/or to receive the income it generates. Trusts can help manage and protect property, and for a long time could also offer tax benefits when drafted into wills or arising out of life insurance.

However, since 2015, only graduated rate estates (first three years) and qualified disability trusts can use graduated tax rates. All other trusts are taxed at the top bracket. Now, quite apart from any taxes due, legislative changes enacted in 2022 mean trusts are subject to enhanced reporting requirements that may require clients to share significantly more information about themselves and their trusts with the Canada Revenue Agency (CRA).

These legislative changes, most of which apply to annual tax fillings in 2023 and later, may affect the planning work you’re doing with clients this year and in future years.

THREE KEY CHANGES

Historically, if a trust had little or no income, it did not have to file an income tax return. The new rules require a return regardless of income. They also significantly expand who and what must be reported. Note that affected trusts must use a calendar taxation year, with their returns due 90 days later.

There are three main changes to be aware of:

• All trusts (with limited exceptions) must now file an annual T3 Return

• A Schedule 15 Beneficial Ownership Information of a Trust must be included with the T3 filing

• Bare trusts are subject to the new reporting rules, but are exempt from the filing requirements for the 2023 tax year unless CRA makes a direct request to a taxpayer While disclosure of the trust parties and particulars was very limited in the

past, Schedule 15 requires information on all “reportable entities.” This includes the settlor(s), each trustee and beneficiary, and any “controlling person.” That last category includes anyone who has the ability, under the trust terms or a side agreement, to influence how income or capital is allocated to beneficiaries.

The information that must be provided for each of those reportable entities includes the full legal name, address, birthdate (if applicable), country of residence, and tax identification number. That last one would be a social insurance number for an individual, the business number for a corporation, a trust tax filing number, or the identification number assigned by a foreign jurisdiction for a non-resident.

AFFECTED TRUSTS

Express trusts — those intentionally created by the settlor — were generally exempt previously, but will now have to file, including:

• Business trusts used to hold private company shares

• Family trusts used to hold a vacation property

• Qualifying spousal trusts, alter ego trusts, and joint partner trusts

• All testamentary trusts other than graduated rate estates and qualified disability trusts

The new rules also extend to bare trusts, where the trustee is merely an agent of the beneficiary/ies. In such situations, property title may be in the trustee’s name, but the trustee can only act with the permission of the beneficiary/ies. Examples include:

• Gratuitously adding a child jointly to a parent’s financial account or property (depends on facts)

• Holding real estate for a property developer or pending completion of a joint venture or partnership

• Specific trust accounts held by a lawyer for a client

A parent or grandparent may hold money in an account, with the name recorded as being “in trust for” a minorage child or grandchild. The mere use of that phrase does not suffice to create a trust, but if it is factually a trust then it will have to be reported unless it meets the small balance exception described below.

EXEMPTION FOR LISTED TRUSTS

Some personal trusts escape the Schedule 15 beneficial reporting requirement (for a time) — specifically:

• A trust that has been in existence for less than three months at the end of the year

• A trust that holds assets with a total fair market value of less than $50,000 throughout the year, if the only assets are a combination of money and common financial instruments such as publicly listed shares and bonds, mutual funds, and segregated funds

Also exempt are professional, commercial, or financial dealings that are required or allowed to be in the form of a trust. This includes registered charities, mutual funds and segregated funds, lawyers’ general trust accounts, registered savings accounts such as Registered Retirement Savings Plans and Tax-Free Savings Accounts, cemetery care trusts, and eligible funeral arrangements.

PENALTIES

If a T3 Return or Schedule 15 is not filed as required, the CRA may impose a penalty that is the greater of $2,500 and 5% of the highest amount of the fair market value of all the property held by the trust at any time in the year.

When CRA announced on March 28, 2024 — the last business day before the filing deadline — that reporting for bare trusts would not be required for the 2023 tax year, it said it would clarify its guidance in the following months. We will be watching for updates.

DOUG CARROLL, JD, LLM (Tax), CFP, TEP, is a tax & estate specialist with Aviso Wealth. He can be reached at doug@douglascarroll.ca.

Want to see this article online? Go to MyAdvocis.ca/forum-magazine/

CONGRATULATIONS CHS DESIGNATES

By obtaining the CHS designation, you have demonstrated a significant commitment to your career and your clients.

Jeffrey Chapman

Peter Lee

Nicole Mensink

Ricardo Henriques

Ryan Cruz

Steven Johnson

Mark Power

Son Nguyen

James Morton

Tamara Carter

Marie Dean

Daniel Stryker

CHS DESIGNATION HOLDERS

David Schwarz

Terasa Rausch

Jordan Desumma

Ashwani Nandrajog

Mona Mengi

Harpreet Saini

Umarpreet Chawla

Harpal Mann

Trishna Noor

Alaeddine Jabri

Marcais Bowen

Reeva Zanger

Sarbjit Bedi

Xinyi (Millie) Pu

Zendel Mary Sayson

Manuel Iv Espinosa

Norie Lat

Varsha Shah

Alissa Angel

Lorain Keeso-Perri

Sinclair D’Costa

Hongri (Henry) Li

Son Nguyen

The Institute CHS

AWARD 2023

Special Congratulations to Siqi Wang

On achieving the 2023 CHS Award for the highest mark in the Advocis CHS education program.

All About the CEA Designation

An interview with CEO Mark O’Farrell

The Canadian Institute of Certified Executor Advisors

Tell us about the Certified Executor Advisor designation. How long has the CEA been around?

We’re in our eleventh year now, with over 1,500 members across Canada, and still growing quickly, though we’re strongest in Alberta, British Columbia and Ontario, at the moment.

Okay, how does an advisor’s business benefit by helping executors settle estates?

It doesn’t really, but that’s not what CEA financial advisors do. There are many other CEA professions that help executors with estate settlement. Financial advisors work with executors and their testator parents* long before death occurs, to ensure their estates are well prepared, and again at time of death to help the heirs of the estate. Think of testators (those planning their estates), executors (those settling estates) and heirs (those inheriting estates) as the three ‘characters’ in estate transfer, with the executor being the conduit to the other two.

*98% of Canadians intend to name a family member as their executor. Unless the testator dies prematurely, their spouse won’t be up to the task, so the job invariably falls to the children.

How can financial advisors use the CEA to expand their practice?

There are many ways, but the first thing to note is that the word ‘use’ is a verb, meaning it requires action. So one way, as an example, is by engaging with executors in their practice and in their community, and raising awareness about their risks and responsibilities, advisors can obtain meetings with executors and their testator parents, use the CICEA’s Executor-Testator Review form to navigate the meeting, and discover planning and business opportunities that will ensure well prepared estates with risk mitigation strategies for successful estate settlement when the time comes.

Is it really as easy as you make it sound?

It is, because there’s a process involved, and people get that. The designation positions the relationship, the CICEA Forms guide the meetings, the proprietary estates calculators make the work easy, and then the advisor just positions appropriate solutions, such as life insurance along with the alternatives to funding an established liquidity issue. If you think about servers in a restaurant, their revenue is about 15% ‘sales’ and 85% just taking orders. This process makes the advisor’s business more like that. (“Would you like single life or joint-last-to-die?

Will your business be having the same? And did you want segregated funds on the side for your savings accounts?”)

Okay, so good for life sales, what about AUM?

AUM is by far the biggest part, because the CEA positions the advisor at the core of the estate transfer process. The key opportunities include: Asset Retention, because an estimated 98% of assets face transfer risk at death (Investor Economics), Asset Consolidation, inspired by love for their children rather than investment metrics, Asset Growth through new client acquisition, because executor conversations are hugely popular, and of course, segregated funds, for estate bypass, liquidity and risk mitigation.

Okay, anything ELSE for new business strategies?

Absolutely, that was just the planning side, and we didn’t touch on any of the business succession, marketing and networking opportunities at all yet. On the settlement side, the executor is ideally positioned and motivated to introduce the heirs of the estate, and these are dream clients. They’re behind in their savings, underinsured, often have the wrong type of insurance, don’t understand their group benefits, and usually aren’t yet working with an advisor, yet they just came into a tax-free lump sum, and it is catchup time, to get everything back on track.

When you say, ‘business succession’, do you mean for business clients?

Well, that too, sure, but no, I was referring to the advisor’s own business succession. Consider when the buyer and seller are working together through the transition, and the buyer wants to meet the clients, you essentially have two generations of advisor. What could be better than them meeting with two generations of clients? It’s brilliant for relationships, planning, and actually growing assets through that period rather than just worrying about minimizing outbound transfers.

You mentioned using CICEA’s forms, tools, proprietary calculators, plus there is the cost of the CEA course itself, the national directory, the CEAN network… sorry, but what does this cost, all in?

The CEA course is $1,495, less any discounts, such as through Advocis, which is $200 off. Once you’re a member, everything else you mentioned is included at no additional cost. There is an annual membership fee beginning on the first anniversary and it’s only $295 with a monthly pay option of $25.80. That’s it. The ROI breakeven for an insurance or financial advisor should be on their very first sale or new client, and the membership fee is probably the cheapest marketing strategy in the country.

Mark, you come across as very confident about working with executors. Where does that come from?

The very first executor-facing seminar I did, back in 1995, was with speakers from three other professions. We were going to call it ‘Estate Planning’ and we hoped for 30 attendees, but we called it ‘Estate Planning for Executors’ and we had 600 people come out. That was when we realized the powerful engagement of the word ‘executor’.

Any last thoughts for advisors thinking seriously about becoming a CEA?

I think taking a new course may be a bit daunting for a lot of advisors who ‘have been out of school’ for some time, just like myself. I’d like them to know that we designed the CEA with that in mind. We don’t believe learning should be difficult or stressful, and we built everything with that in mind. It has images, charts and graphs, online notetaking and highlighting, search functionality, and a 1,000-term glossary for easy reference. The exam is fifty multiple choice questions and if you miss it the first time, just review the material and take it again when you’re ready. The CEA will be the most fun course you’ve ever taken!

BY KEVIN WARK

Probate Strategies

The pros and cons of common approaches

My last FORUM column covered probate basics and how advisors can help clients “pre-plan” the distribution of estate assets before meeting with their estate lawyer. The benefits of this type of planning typically include minimizing probate fees and costs, protecting assets from estate creditors/ family law claims, ensuring confidentiality of estate plans, and minimizing delays in estate administration. In this column, we’ll explore common probate planning strategies (outside of a will) to accomplish these goals while ensuring clients’ assets ultimately go to the desired beneficiaries.

GIFTING WHILE ALIVE

For older clients in particular, an easy and cost-effective method of dealing with estate assets is to transfer them to intended beneficiaries prior to death. This must be properly planned to ensure it does not adversely affect the client’s lifestyle in the future. As well, gifting certain assets to family members, such as transferring a family home or cottage into joint ownership, can result in family conflict and financial risks, and therefore must be carefully considered. When a gift is made to an adult family member (other than a spouse), it should be documented to avoid future family disputes. The tax consequences arising from the transfer of property (both now and in the future) should also be reviewed with the client’s tax advisors before proceeding.

BENEFICIARY DESIGNATIONS

At the time of death, many of your clients will hold registered investment plans, such as a Registered Retirement Savings Plan, Registered Retirement Income Fund, or Tax-Free Savings Account. They may also own insurance products, such as term/permanent life insurance and/or segregated fund policies. All of these plans permit the owner to appoint a successor owner and/or designate a beneficiary.

Establishing who will receive these funds on death, either in the contract with the plan provider or through the client’s will, ensures the funds flow directly to the named person outside of the estate. In addition, when the deceased’s spouse is the named individual, this can result in continued tax deferral of registered funds, as well as preserving other tax benefits.

USE OF TRUSTS

A more expensive and complex probate planning option uses trusts established while your client is alive (inter vivos trusts). The client (referred to as the “settlor”) executes a trust deed, under which property is transferred to a third party (the trustee) to be administered for the named beneficiaries. Given the costs of establishing and maintaining an inter vivos trust, this vehicle is typically only used by wealthier clients. Note that the transfer of capital property to the trust generally results in the disposition of that property at fair market value, with possible tax reporting for the client. These trusts are also subject to the 21-year deemed disposition rule, which triggers tax every 21 years on appreciated capital property retained within the trust.

Clients age 65 or older may want to use an alter ego or joint partner trust as an alternative to a “regular” trust. These trusts hold property for the benefit of the settlor (and their spouse under a joint partner trust) while alive, with the trust property distributed on death to the named residual beneficiaries. Unlike a typical inter vivos trust, capital property can be transferred to the trust on a rollover basis (i.e., with no capital gain) and the 21-year deemed disposition rule does not apply. Instead, capital gains are taxed on the death of the settlor (or the death of the surviving spouse under a joint partner trust). In addition, trust income is taxed in the hands of the settlor/surviving spouse as if they directly owned the trust property.

APPROACHES FOR BUSINESS OWNERS

Anyone who deals with busy business owners knows it can be difficult to motivate them to focus on estate and business succession planning — so, often, they only have simple wills and powers of attorney. However, failing to give proper thought to the succession of their business on death can result in significant financial concerns for family members and shareholders. Typical issues can include a lack of liquidity to pay taxes and/or fund a buy-out on death, as well as creditors and suppliers losing confidence in the business.

It is, therefore, critical to work closely with a business owner’s other professional advisors to help develop an appropriate business succession plan. This may incorporate a buy-sell agreement, estate freeze and family trust, integrated will planning, and life insurance to cover funding requirements and taxes on death. Key considerations often include appropriately taking care of non-active family members, achieving family consensus on who will run the business following the departure of the owner, and ensuring sufficient liquidity in the business to reassure key stakeholders. Clients need to start this process sooner rather than later, as it can take years to design, obtain agreement on, and properly implement a business succession plan that integrates with the owner’s estate plan.

As a key advisor to your clients, you can play an important role in helping them understand the importance of probate planning and present them with the planning options available to them. As part of this process, you can also advise and implement complementary changes to their insurance and investment planning arrangements.

KEVIN WARK is managing partner of Integrated Estate Solutions and a tax advisor to CALU. He is the author of several tax/estate planning books entitled “The Essential Canadian Guides” that are available through Amazon.ca.

CONGRATULATIONS PFA DESIGNATES

By obtaining the PFA designation, you have demonstrated a significant commitment to your career and your clients.

PFA DESIGNATION HOLDERS

Darrell Peters

Lorri McLeod

Joel Lapierre

Todd Fournier

Kelly Dagelman

Jennifer Thaker

Anthony Puzzuoli

Luc Choquet

Jonathan Wright

Chris Fliesser

The Institute PFA

Special Congratulations to Anthony Puzzuoli

On achieving the 2023 PFA Award for outstanding PFA examination performance.

BY PATRICK UZAN

What’s Taxable?

Life insurance ownership-payor-beneficiary structures

On January 18, 2024, the Federal Court of Appeal (FCA) dismissed the taxpayer’s appeal in the Gestion M-A Roy and 4452712 Canada Inc. v. The King case (the “Gestion case”; see Kevin Wark’s May 2023 FORUM article on the Tax Court of Canada decision). Following this decision, it’s worth reviewing various Canada Revenue Agency (CRA) technical interpretations and court decisions on different corporate-owned life insurance arrangements.

1. Corporation as policy owner and payor of premiums, shareholder as beneficiary. When the policy owner and payor of premiums is a subsidiary corporation (“Subco”) and its parent company (“Parentco,” the 100% shareholder of Subco) is the beneficiary of the policy, CRA takes the position that a shareholder benefit under subsection 15(1) of the Income Tax Act (the “Act”) has been conferred on Parentco. In support of its position, the CRA cites case law that states shareholder benefits are applicable when there is a conferral of an economic benefit to a shareholder of a corporation and an impoverishment to the corporation.

In the case of a shareholder who is an individual, CRA takes a similar position if the estate, spouse, or other related parties of the life-insured shareholder are named as beneficiaries of a corporate-owned policy. The 2022 Tax Court of Canada decision in Harding v. The Queen (the “Harding case”), involving corporate-owned policies on the life of a shareholder that named the shareholder’s spouse and stepchildren as beneficiaries, concluded it was appropriate to include amounts based on premiums paid in Mr. Harding’s income as shareholder benefits.

2. Parentco as policy owner and payor of premiums, Subco as beneficiary. CRA was asked to comment on two specific scenarios under this structure.

In the first scenario, the beneficiary designation is revocable and Subco does not reimburse Parentco for premiums paid. CRA indicated that subsection 246(1) of the Act may apply to include the amount of premiums in Subco’s income. Subsection 246(1) deals with direct or indirect conferral of benefits by one party on another, but for the provision to apply, it must satisfy the condition that the amount of the benefit would have otherwise been taxable to the conferee if it were a payment made directly to the conferee by the party conferring the benefit (the “hypothetical payment criterion”). Tax commentators have noted that since Parentco can make payments directly to Subco in the form of a loan or additional share subscriptions without such payments attracting tax for Subco, subsection 246(1) should not apply.

The second scenario involves Subco as irrevocable beneficiary, with Subco reimbursing Parentco for the premiums. CRA commented that under such a structure, the reimbursement may be considered income from property to Parentco under section 9 of the Act, or under paragraph 12(1)(x) of the Act, which includes in income certain reimbursements received by a taxpayer.

In either case, CRA did not comment on whether a designation being revocable or irrevocable had any impact on its views.

3. One corporation as policy owner and payor of premiums, a sister corporation as beneficiary. CRA was asked to comment on a situation where two corporations (“Sisterco1” and “Sisterco2”) were wholly owned by the same parent corporation. Sisterco1 would be the policy owner and premium payor and Sisterco2 would be the beneficiary and reimburse Sisterco1 for premiums paid. Again, CRA indicated that section 9 or paragraph 12(1)(x) of the Act could apply to the policy owner (i.e., Sisterco1) receiving the reimbursement.

4. One corporation as policy owner, another corporation as beneficiary and payor of premiums. These structures were the subject of the Gestion case, where an operating company (“R3D”) was the beneficiary on policies owned by its majority shareholder (“Gestion Roy,” a corporation) and policies owned by a related corporation (“445 Canada”). R3D paid the premiums on these policies. On the basis that it is the policy owner’s responsibility to pay the premiums on policies they own, Gestion Roy was assessed shareholder benefits under subsection 15(1) of the Act, and 445 Canada was assessed benefits under subsection 246(1) of the Act, equal to the amount of premiums paid by R3D during the relevant times. With respect to subsection 246(1), both the Tax Court of Canada and FCA applied the same test as under subsection 15(1), without considering how the hypothetical payment criterion in subsection 246(1) applied in this case.

The Harding case and Gestion case decisions may create uncertainty when contemplating corporate-owned life insurance. For example, tax commentators have pointed out that simply designating a revocable beneficiary does not constitute a benefit conferral at that time (and mentioned similar arrangements and previous commentary and jurisprudence to support that position). Another issue is valuation. Arguably, the value attributed to only potentially receiving life insurance proceeds in the future is not correlated to the amount of premiums paid by the policyholder. Yet another issue is the lack of interpretive guidance by CRA and the courts on the hypothetical payment criterion required for subsection 246(1) to apply.

CRA has a long-standing position that generally no taxable benefit will arise provided the same corporation is the policy owner, payor of premiums, and beneficiary of a life insurance policy on the life of a shareholder. Taxpayers and their advisors should be cautious when considering a structure that strays from this format.

PATRICK UZAN, CPA, CA, TEP, CLU, is vicepresident, planning services at PPI Advisory in Calgary, where he supports advisors in developing and implementing estate and tax planning strategies in the high-net-worth market.

Grow with Philanthropy

Why you should incorporate philanthropy into your practice

As wealth advice becomes increasingly holistic in scope, philanthropy is emerging as a pivotal category that advisors are recognizing as important to their clients. Like investment strategies, retirement planning, and tax efficiency, philanthropy should be a lifelong topic of discussion and planning, at least with your charitably minded clients.

When you provide guidance on philanthropy, you are both broadening and deepening the scope of your client relationships. While philanthropy is inherently personal, some clients are beginning to question why something so important to them isn’t managed and advised on as professionally as their “other wealth.” Overlooking what is for some clients one of the most critical elements of their wealth is a missed opportunity and a risk. On the other hand, addressing this important area can lead to significant rewards for clients and advisors.

While offering advice on a client’s philanthropic giving is good for clients and the world, it is also good for your business. Fidelity Charitable’s recent “On the leading edge” report (www.fidelitycharitable.org/ content/dam/fc-public/docs/insights/onthe-leading-edge-report.pdf) underscores that integrating philanthropy into a wealth practice results in increased assets, accelerated growth, and a larger share of wallet. As advisors respond to this new reality, they find that not only are they deepening relationships with existing clients, but they are also attracting new prospects.

An excellent tool for seamlessly integrating philanthropy into your advisory services is the donor-advised fund (DAF). Many Canadian foundations offer DAFs, providing clients with a giving vehicle

that allows them to donate assets, receive an immediate tax benefit, and make recommendations over time regarding the granting of those funds to specific charities of their choice. At the same time, the assets can remain on your book and grow tax-free. A 2023 report from KCI and the Canadian Association of Gift Planners, “Influence, affluence and opportunity: donor-advised funds in Canada” (kciphilanthropy.com/ influence-affluence-opportunity-donoradvised-funds-in-canada), identified increased advisor interest as an important reason for the rapid growth of DAFs in this country. Indeed, your firm or investment partner may have its own in-house DAF offering or established relationships with independent DAF sponsors.

BRIDGE “THE DISCONNECT”

Hopefully, at this point, you are convinced that there are benefits to incorporating philanthropy into your practice. However, before we discuss how to start, let’s address a common challenge, one that I like to call “The Disconnect.” Studies from Canada and the United States reveal that when it comes to the conversation about charitable giving, advisors and clients often misunderstand each other. Advisors may think they raise the subject of charitable giving consistently with all clients, while clients often wonder why they have to be the ones to bring it up with their advisor. Something important is being lost in the communication between advisor and client, and addressing the issue is crucial. Thankfully, systematizing a response is easy.

The solution to this problem is what is sometimes called “The Philanthropic Conversation.” It is simply a list of questions, starting with my personal favourite:

“Are there any causes or charities that you and your family support?” The key is to include this question in every client review. Not every client will be philanthropic, and, while that is unfortunate, documenting this information is still valuable. Make a note in the file and move on. However, for those who are charitably minded, further questions can guide the conversation. Significant givers may be excellent candidates for a DAF, and small-scale donors can still benefit from some simple advice. Over the years, I have participated in numerous conversations between advisors and clients, and I have witnessed a consistent pattern — engaging in a philanthropic conversation deepens relationships.

If you are still skeptical, consider this a challenge: include my favourite philanthropic question in your next six client reviews and watch what happens. (I would be happy to hear from you after the experiment concludes.)

Now, what if you are not familiar with some of the more strategic aspects of philanthropy? I agree it can be intimidating. Don’t you have enough to worry about and keep up with? I recommend taking the Master Financial Advisor — Philanthropy (MFA-P) course offered by Knowledge Bureau, in partnership with Canadian Association of Gift Planners, Spire Philanthropy, and Advocis. Let me be clear: you do not need to be a philanthropic expert — there are people who can help you when the need arises — but this course will give you a fluency and comfort that will serve you well when in conversation with your clients about their charitable interests.

Adding philanthropy to your service offering is worth serious consideration. Many of your key clients (as well as many promising prospects) are already active givers and would benefit from your professional guidance.

MICHAEL TODD, MFA-P, heads Transform Philanthropy in assisting wealth advisors with their charitable service strategy. He has more than a decade of innovative experience in foundations and has been active in the sector for 20-plus years. Connect with him on LinkedIn or reach out to him at mike@transformphilanthropy.ca for further insights.

CONGRATULATIONS CLU DESIGNATES

By obtaining the CLU® designation, you have demonstrated exceptional commitment to your career and clients, and have elevated your practice to a level that distinguishes you among your peers.

Theresa Aucoin

Paul Bethel

Chong Cai

Lisa Calleja

Pierson Chan

Michael Cummings

Tannis Dawson

Steve Fooks

Dave Hawryluk

Nathan Heppner

Chad Katunar

Steven Krueger

Gabriel Lalonde

Christopher Mahussier

Sean Nazareth

Jeffrey Ng

Iwona Nicastri

Stefano Pannu

Jason Poulton

Matthew Henry Prescilla

Domenic Principe

Scott Skjei

Nathaniel Souliere

Jim Thornton

Yi Wang

Blake Willert

Del Wilmot

Yong Xia

CLU DESIGNATION HOLDERS

Sudhanwa Panvalkar

Jennifer Anderson

Michael Masotti

Leslie Orr

James Patterson

Mark Smith

Kristi Allan

Michelle Bernard

Lissa-Marie Brossard

Brian Brotherston

Anderson Chiu

Neil Collins

James Cooper

Terencia Coward-Thompson

Adam Deffett

Rory Drennen

Daniel Dupuis

Alireza Fadaie-Khoi

Joshua Froese

Jordan Gillespie

Kelly Gonnsen

Ginette Goulet

Samantha Gowers

Joseph Guido

Lisa Guyon

Aaron Hall

Bryan Hall

Mario Hanna

Erik Hayes

William Henriksen

Gail Hood

Doug Johnston

Allan Joudoin

David Kirkup

Matthew Lane

Min Li

Lisa Lyttle

Brian McEvoy

David McGruer

Raymond McHarg

Ashwani Nandrajog

Son Nguyen

Thomas Park

Lidia Pirrie

Kevin Reid

William Reinkens

Frances Robert

Aaron Sabasch

Peyman Salari

Cher-Lynn Sanderson

Krystyn Schilling

Maryam Sukhram

Michael Toogood

Cindy Vanderlinde

November Varga

Stacy Whytewood

Paul Wiens

Lionel Williams

Hua Wu

Chenyi Zeng

Benjamin Aldridge

Portia Arriola

Yi Chen

Sylvia Dadshani

Liping He

Jenish Kanabar

John A. Tory AWARD 2023

The Institute congratulates 2023 John A. Tory Award Winner

Pierson Chan For attaining the top mark in Canada.

Leslie W. Dunstall

AWARD 2023

Anuj Kapoor

Adam Peros

Drew Ross

Joel Scheel

Siqi Wang

The Institute specially recognizes the 2023 Dunstall Prize Winners for attaining top marks in their respective provinces:

AB - Raymond McHarg

BC - Pierson Chan

MB - Nathan Heppner

NB - Frances Robert

NS - Michael Cummings

ON - James Cooper

QC - Mario Hanna

SK - Cindy Vanderlinde

BY PHILLIP ACKERS

Leadership Shines at LAMP

Experiencing the 2024 conference

LAMP 2024 took place from March 17 to 20 in Denver, with a panel of Canadian professionals setting the stage on the first day by sharing thoughts and best practices. As Jason McMahon, president of the GAMA Global Canadian Board, observed, “The theme was built around how to build a great culture, and the questions and discussions were reflective of the different company participants and backgrounds.” In other words, you wouldn’t normally see Coke and Pepsi in the same room together, but at LAMP it’s about all of us raising our game. That concept defines the LAMP brand.

John Maxwell, author of 100-plus books on leadership, personal development, and success, was one of many enlightening speakers. He offered compelling thoughtprovokers, such as, “If you are at the head of the class, you are in the wrong class”; “You can’t moan and lead at the same time”; and “At one time, it was about knowing more — now knowing before is key.”

Maxwell’s model of how successful people think resonated with Jaclyn Nemethy,

OVERCOMING ADVERSITY

Where else would you meet one of Sports Illustrated ’s 100 most influential NFL figures of all time? Sarah Marshall, the first female NFL official, took us through her journey and the challenges she faced. These words resonated: “Don’t do it to prove anyone wrong; prove to yourself where you belong” and “Be yourself, because everyone else is taken.”

We also heard from Austin Hatch, who survived two plane crashes — each of which had multiple casualties — against odds of about 11.5 quadrillion to one. His message of choosing the harder right instead of the easier wrong hit home.

MENTORS EVERYWHERE

Even more impressive was the access granted to industry greats, who offered actionable ideas and defined the underlying theme of LAMP. Adrian Fung and Sonia Wu of Sun Life shared insights into how to future-proof your practice. As a former physician, Wu reflected on her shift to financial doctor from medical doctor and her rise to being a top-performing leader.

regional director of strategic relationships at PPI. “Creative people know that there’s always an answer, but those who take it to the next level are those who always believe that there is a better one.”

Fazaad Baccus of Desjardins reminded us that it’s our perspective that guides us. As he put it, the same wind can take you out to sea or bring you back to port — the only difference is how you have set your sails.

SEEING THE FUTURE

In our fast-paced world, glances into what’s possible make you stand up and take notice. We caught glimpses into the future of technology through Galleri, a screener for more than 50 types of cancer, and through Currence, a money-management platform that is refining how we think about income allocation versus asset allocation.

In all, more than 50 sessions shed light on what it will take to thrive within our industry. More than 40% of participants were first-timers, clearly demonstrating that word is spreading. Make your plans now for Orlando, Fla., in 2025 and become the leader you were meant to be.

PHILLIP ACKERS, CPA, MBA, is principal and founder of Lakeshore Performance Limited, and a member at large on GAMA Global Canada’s board of directors.

Leaders and leaders-to-be acquired essential skills at LAMP 2024 in Denver.

Elevate Your Practice

Ready to take your career in financial planning to the next level?

The CLU designation sets the standard for excellence in the areas of risk management, wealth creation, estate planning, and wealth transfer. Join a prestigious community of professionals who have been raising the bar for nearly a century. Stand out from the crowd and provide your clients with the highest caliber solutions they deserve.

Discover the power of CLU and redefine success in financial planning!

Refer to our website and learn more at: www.advocis.ca/clu-designation-program

The CLU is an approved designation for use of the title Financial Planner in Ontario.

Advocis News

CHAPTER NEWS

Advocis Calgary members volunteered at the Calgary Food Bank and made an impactful contribution by generously donating their time and effort to serve more than 400 families in need.

CELEBRATING THE SEASON WITH GENEROSITY

In the spirit of giving and solidarity among members and colleagues and rooted in a belief in the importance of supporting our community’s most vulnerable members, Advocis South Saskatchewan raised more than $3,500 for the Regina Food Bank at the chapter’s festive gathering.

“We wanted to remind ourselves and our members that not everyone has the means to celebrate the holiday season in the same way. This year, it felt especially important, considering food inflation and rising homelessness in our community,” says Jake Ripplinger, communications chair for the chapter.

“By offering the event free of charge, thanks to local support, we hoped to encourage widespread participation and strengthen our sense of community. We believe that by coming together to support those in need, we can create a brighter future for our community as a whole.”

Advocis Simcoe Muskoka members gathered for the first of four 2024 Wisdom Wednesday events. Attendees heard two of Robert Gignac’s dynamic talks and received a signed copy of his book. In addition, BMO Investments provided a state-of-the-market economic update.

Preparing to feed families at the Calgary Food Bank.

Robert Gignac signs copies of his book Rich Is a State of Mind.

Sanjay Singla, Elaine Erhart (chapter president), and Steven Shephard get wiser on a Wednesday.

Chapter members take advantage of a break to fit in some networking.

CALL FOR ENTRIES

■ NATIONAL MANAGEMENT AWARD

■ NATIONAL AGENCY BUILDER AWARD

■ NATIONAL AGENCY ACHIEVEMENT AWARD

■ NATIONAL MULTI-LINE EXCLUSIVE AGENCY MANAGEMENT AWARD

Learn more at:

GAMA GLOBAL CANADA MANAGEMENT AWARDS

The 2024 GAMA Global Canada Management Awards recognize the highest leadership achievements in Canada’s financial services industry.

Award winners will be formally recognized at the GAMA International Awards dinner during LAMP 2025 in Orlando, FL.

INTERNATIONAL WOMEN’S DAY EVENTS

On March 7, Advocis Toronto hosted its sixth International Women’s Day Breakfast with Million Dollar Round Table (MDRT) Canada; it was sponsored by Desjardins. This sold-out event included a captivating interview with Sim Gakhar, MDRT country chair; a panel discussion moderated by Rehan Bhanji that featured Sarah Balram, Anna Khan, Tara Pollard, and Zainab Williams; and a keynote presentation from Elke Rubach, founder of Rubach Wealth.

Advocis Greater Hamilton hosted a vibrant International Women’s Day Celebration on March 6. Also sold out, it included presentations by Kim Fitzpatrick (“The Power of YOU!”); Marsha Vanwynsberghe (“Your Limiting Beliefs Hold Your Greatest Gifts”); Dr. Ashley Chauvin, ND, MSCP, and Dr. Laura von Hagen, ND (“Menopause Roadmap: Navigating Your Hormones After 40”); as well as stand-up comedy by Amy Sloan.

Advocis Newfoundland and Labrador hosted its second International Women’s Day celebration on March 7 at the

IN MEMORIAM

Vincenzo (Vince) Della Pia 1957–2024

Advocis was saddened to learn of the passing of Vince Della Pia on February 8, 2024, at the age of 66. Vince joined Advocis in 1997 and held the CLU and CHS designations. He was a member of the Advocis Durham chapter for 26 years and served as Institute representative in 2010. Vince was the president and

beautiful Bella Vista Events Venue. The half-day event included a panel discussion on barriers and breakthroughs, lots of networking, a panel of advisors and industry leaders who discussed barriers and breakthroughs in their careers, and workshops on putting accessibility and inclusion into practice. Musical guest Rachel Cousins capped off the event.

founder of Elan Planning and Wealth Management, displaying a passionate and thoughtful attitude toward advisors and clients. He made a difference in many people’s lives through his generosity and dedication. “Vince has been a colleague and friend of mine for many years and I, along with all of his Advocis friends and colleagues, will deeply miss him,” says Chris Hudson, Advocis Regional Leader for Ontario Central. We send our condolences to his family and friends.

Advocis Newfoundland and Labrador celebrates International Women’s Day.

Advocis Greater Hamilton celebrates International Women’s Day.

Advocis Toronto celebrates International Women’s Day.

Your Practice, Your CE

Advocis develops Continuing Education to meet the needs of financial advisors and planners by focusing on the most relevant issues facing our industry. With a wide selection of courses that reflects the comprehensive nature of contemporary financial advice, choose Advocis CE for the practice you lead today and the one you build for tomorrow.

Refer to our website and learn more at: advocis.ca/CE

Advocis members will always benefit from preferred pricing on all our educational offerings.

SRebuilding with Resilience

ince I stepped in as interim CEO for Advocis in September 2023, my primary focus has been on righting the organization’s finances to ensure it’s once again well-positioned to continue and thrive. Frankly, the financials for 2022 and 2023 were not healthy — and we’re looking at 2024 to be a new beginning.

BY HARRIS JONES

Like every one of us, this organization has had ups and downs since members of the Life Underwriters Associations of Montreal, Quebec City, Prince Edward Island, and Toronto came together in 1906, enabling life insurance agents across the country to speak with a common voice. More than a century of history means we’ve surmounted challenges before. We will again.

To get there, Advocis has streamlined operations. At the same time, we’ve prioritized maintaining the service levels our members expect and deserve. We remain laserfocused on delivering value to members. One very visible streamlining initiative is the member fee structure, where we’ve reduced 63 fee categories down to the clarity of four: full, provisional, student, and retired.

Full members are experienced practitioners — the established professionals who are the backbone of our industry and who spend their days protecting the financial well-being of Canadian families. Provisional members are carving out a place for themselves in our profession, acquiring knowledge, designations, and experience to build credibility. Student members, newly licensed, are learning their stock in trade and getting ready to launch their careers. And retired members are just that — professionals who have made a positive difference to countless clients over the years and are ready to enjoy the well-earned opportunity to pursue volunteer and other interests.

While our members have different levels of experience, different backgrounds, and different approaches to delivering financial advice, they all share a commitment to put the public first.

THE THREE Cs

The foundation for our work at Advocis is three interlocking imperatives that serve our members’ and Canadians’ interests. We call them

The Three Cs.

The first C is our all-important Code of Conduct. It’s a commitment backed by enforcement. If a client complains, we check for any breach of that code. I think every member understands that you can only lose your integrity once and that the code of conduct is an assurance to clients that we’re in this for them.

The second C is Continuing Education. This is something I’ve pursued throughout my career, adding to my CPA, CA several other designations: CFP, CLU, CH.F.C., and TEP. I’ve always sought more education to learn and develop as an advisor. Acquiring new knowledge equips us to excel and do a better job in meeting the changing needs of Canadians.

The third C is Community. It’s every bit as important because we are stronger as a professional group. Community is nurtured in chapter meetings, at sponsored events, and through our education programs. One of our goals within the organization is to broaden our community by growing our membership base. Together, we are smarter and better at solving the challenges we encounter than any one of us is individually. That’s why, since becoming interim CEO, I’ve appreciated hearing from members with their support and advice. This is a perfect example of many heads being better than one.

THE PATH FORWARD

All of us, together, are meeting our organization’s latest challenges by rebuilding Advocis on the strong foundation of The Three Cs, with a vision of resilience for the future of our organization, our members, our clients, and our endlessly rewarding, constantly evolving industry.

HARRIS JONES, CPA, CA, CFP, CLU, CH.F.C., TEP, is interim chief executive officer of Advocis.

EXPANDING YOUR PRACTICE ACROSS THE STRATOSPHERE

For the latest in advanced retirement planning, in-depth client profiles and detailed financial plans, check out Milestones and Planworth, the latest digital tools to enter PPI’s Stratosphere.

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Unparalleled Resources. At Your Command.

Global Medical Care™

Advisors understand the importance of planning for the future!

Health insurance should offer more than just coverage, it should ensure peace of mind and security. Imagine your clients in a medical crisis. With Global Medical Care™, your clients are prepared for unexpected medical emergencies. Our medical network grants immediate access to advanced treatment worldwide. We arrange appointments, testing, recommend specialists for treatment, and follow-up care seamlessly. Affordability and quality rolled into one package. That’s Best Doctors Global Medical Care™! Your clients will thank you for recommending Best Doctors Insurance Canada to protect their personal health.

Life’s unpredictable. Your client’s healthcare shouldn’t be For more information visit www.bestdoctorsinsurance.ca or call 1.855.667.4028.