HOW TO BETTER SUPPORT CLIENTS WITH DEMENTIA ADVISOR ATHLETES SHARE LESSONS LEARNED
A STRATEGY TO MEET MORE HNW PROSPECTS
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He’s volunteered for almost every role within Advocis. Now Eric Lidemark tells Alison MacAlpine what he hopes to accomplish as chair of the board
With the number of dementia cases rising in Canada, Diane Peters explores how advisors can better support clients experiencing cognitive impairment
22 Faster, Higher, Stronger
These financial advisors have delivered top-level performance in sport. Alex Mlynek investigates crossover lessons from athletics to planning work and back again
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In June 2020, my father was diagnosed with Alzheimer’s disease over a Zoom call. The first consequence, the gerontologist told my mother and me as we faced computer screens on opposite sides of Toronto, was that his driver’s licence would be revoked. The second-most important thing she emphasized was that we should immediately create or update powers of attorney.
In the weeks that followed, we took care of the necessary documentation. What took longer, and required a gentle touch, was transitioning the household role of bill payer and tax preparer from my dad to my mum. At first, every bill required repeated explanations and reassurance – yes, we took care of that one; see, here’s the confirmation number; no, you really don’t have to do it because it’s already done.
Gradually, my dad was able to fully delegate a task that had become a struggle for him — but, when a family member or a client has dementia, there’s often a tension between getting things done and preserving someone’s autonomy. That’s something to consider as you read Diane Peters’ feature on page 18 about working with clients experiencing cognitive impairment.
Unfortunately, dementia numbers are rising in Canada, with the Alzheimer Society of Canada projecting that 597,000 cases in 2020 will grow to 955,900 cases by 2030. Advisors urgently need to develop the skills necessary to support clients with diminished capacity. After all, as Laura Tamblyn Watts told Diane, “Cognitive impairment is part of every financial planner, financial advisor, and wealth industry professional’s portfolio, whether they know it or not.”
Supplementing the strategies in the article, advisors can sign up for Advocis’s Working with Senior Clients CE course, which covers how to work with clients at different stages of dementia (register at www. advocis.ca/continuing-education-practicematters). In addition, Ottawa-based Age Well Solutions runs a Dementia-Friendly ProfessionalTM training program that is CE-accredited in several jurisdictions and
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
T
with the Mutual Fund Dealers Association of Canada (MFDA). Check the website at www.agewellsolutions.ca for upcoming virtual session dates in September, October, and November, or ask about virtual or inperson training sessions for your office.
The Alzheimer Society of Canada website is another valuable resource, containing a wealth of information about dementia including financial worksheets advisors can use with their clients (https://alzheimer.ca/ en/about-dementia/other-types-dementia/ young-onset-dementia/worksheet).
On a lighter note, we welcome the new Advocis chair, Eric Lidemark, on page 12. Eric told me he didn’t set out to be chair — but it happened anyway thanks to decades of dedication to a profession he loves and extensive volunteer work with professional associations. Meanwhile, on page 22, Alex Mlynek profiles four advisors who have excelled in a different way. Each has reached a pinnacle of athletics, and Alex explores how the discipline of sports informs their approach to advising, and vice versa.
Finally, as your schedule fills up for the fall, consider allocating some time to pursue Bryce Sanders’ prospecting strategy on page 8. He offers a numbers-driven approach to meeting high-net-worth Canadians at five types of organizations where they tend to congregate. Four meetings a month at the right places, he suggests, can introduce you to nearly 100 wealthy people who share interests with you within a year.
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
PRESIDENT & CEO
Greg Pollock, CFP
FAAC BOARD OF DIRECTORS
FORUM is published three times annually by The Advocis Publishing Group, 10 Lower Spadina Avenue, Suite 600, Toronto, Ontario M5V 2Z2
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FOR UM EDIT
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.
The landscape of advisory offices has undergone significant changes in recent years, with the integration of technology and the rise of hybrid work models. As we adapt to these new ways of operating, it’s crucial to maximize office space efficiency and make the most of available resources.
Even in a traditional office work model, advisors have recognized the power of digital tools and automation in streamlining processes and enhancing efficiency. This realization has led to the adoption of virtual client experiences, when appropriate, and a more flexible approach to office space utilization.
Digital tools also enable advisors to provide real-time updates and access to financial information. Through secure online portals, clients can view their investment portfolios, track progress, and receive personalized recommendations. This level of transparency and accessibility fosters trust and strengthens the advisor-client relationship.
For advisory teams embracing a hybrid work model, there are several strategies to optimize office space and ensure productivity. These strategies may also be considered for large dealer corporate offices that might be experiencing “empty office” on a much larger scale. Here are some things to consider if you’re rethinking your office space and want to maximize efficiency.
Remote work support: While hybrid work models are prevalent, it’s crucial to continue to provide employees with the necessary tools and technology to work
effectively from home. This approach allows for a more balanced use of office space, as employees can choose to work remotely when it suits their needs, minimizing tech issues.
Shared spaces: If your office has common areas, such as a conference room or break room, ensure they are optimized for multiple purposes. These spaces can be used for meetings, training sessions, or even as temporary workstations when needed.
Hot desking: Implementing a hot desking system allows employees to use any available desk when they come into the office. This approach reduces the need for assigned workstations and optimizes space utilization. This becomes particularly important when you only have a specific percentage of employees in the office at a certain time.
Collaboration zones: Create designated areas within the office that encourage collaboration and teamwork. These zones can be equipped with whiteboards, comfort-
able seating, and technology to facilitate brainstorming sessions and group discussions.
Flexible workstations: Consider investing in adjustable furniture and modular workstations that can be easily reconfigured to accommodate different work styles and preferences. This flexibility ensures the office space can adapt to changing needs.
No matter the office model, creating an efficient office space not only enhances productivity, but also fosters a positive work environment that promotes collaboration and creativity among your advisory team.
With accelerated change over the course of the last three years, advisory teams have learned the importance of adaptability, resilience, and the integration of technology in the modern workplace. The key is always keeping the client experience top of mind and planning accordingly.
Every firm wants its financial advisors to build a highnet-worth (HNW) clientele — and with cold calling almost legislated out of existence, the best way to get in front of wealthy people and ask them to become clients is to become part of their world. How do you do it?
Start by believing new money wants to become old money. Once people become financially comfortable, many get involved in the community and local charities as donors and board members. Because people who give away money like to know how it’s being spent, they attend events and are active with the organizations they support.
This is your opportunity to mingle with the wealthy at a nominal cost. Join the right organizations, show up on a regular basis, make an effort to meet people, and you should become a familiar face, accepted into their social circles. In British terms, you become “clubbable.”
What’s your strategy? Numbers! If you attend one monthly meeting or event organized by four organizations and meet six new people at each one, over 12 months you’ll meet 288 people. Even if one-third aren’t wealthy and another one-third are but don’t connect with you, this leaves the final one-third almost 100 people — who are both wealthy and share interests with you.
To maximize your chances of meeting people with the potential to become clients, choose organizations with wealthy members, monthly meetings, name recognition, and an uncontroversial cause. Here are some ideas.
1. CHAMBERS OF COMMERCE.
The secret to Chamber membership is involvement. Consider it like a dartboard with concentric circles, getting smaller toward the centre. That is where you find the biggest boosters of the local economy. TIP: Metro markets often have several chambers, and don’t neglect cultural chambers if you share the same background.
2. MUSEUMS AND CULTURAL INSTITUTIONS.
These organizations do so much work for you — finding the wealthy, signing them up as members, converting them into donors, and putting a couple of hundred of them into a room once a month — and membership gets you entry into the members-only viewing before a new exhibit opens to the public. TIP: Smaller museums and historical societies have their share of deep-pocketed donors, too.
3. COLLEGES AND UNIVERSITIES.
Educational institutions have plenty of activities that bring alumni back on campus, and if you attended you have a
valid connection with fellow graduates regardless of age and income levels. TIP: Your prestigious high school and/ or graduate degree gives you legitimate access to that school as well.
4. SOCIAL SERVICE CHARITIES.
The wealthy have historically invested in the community to improve the lives of the less fortunate. Your local charities almost certainly have wealthy donors. TIP: Don’t let groups like animal welfare societies, zoos, and parks escape your notice.
5. PRIVATE CLUBS.
Country, city, and golf clubs have plenty of social events. The more exclusive the club, the higher the barriers to entry. However, social memberships may be available for people seeking to drink and dine, but not play golf. TIP: There should be several in your area, and some are easier to join than others.
In addition, consider other local groups likely to attract the HNW segment of the market. These may include neighbourhood associations, medical charities, homeowner’s associations, and special interest clubs.
Socializing is fun, but keep telling yourself that drinking good scotch, sampling tasty canapés, and admiring expensive cars also has a work component. Your object is to raise your visibility, meet plenty of people, identify shared interests, and utilize those interests as the rationale for getting to know them better. Leave your killer attitude at home, but dress well and pack your business cards.
People will ask what you do. It’s an icebreaker question along with “Where do you live?” Do not give your elevator speech. “I’m a financial advisor” often puts people on their guard. Shift the conversation over to them. Take a sincere interest in what they do. Try to get the conversation redirected toward personal interests.
When you make a connection, circle back before the end of the evening. The coat check is ideal during those long Canadian winters. The parking valet station usually has a line, too. Let them know you enjoyed speaking with them. Mention a shared interest and let them know you’d like to keep in touch: “How can I do that?” Have your business card ready. I like writing my first name (and my wife’s) on the back of the card along with the shared interest and our home phone number. Presented handwritten side forward, it communicates this is a personal connection, yet the printed side of your business card conveys your credentials.
You’ve taken the first step toward making a new friend. You know how to cultivate the social relationship from there. You will know when (or if) the time is right to bring up business. People prefer doing business with people they like.
There’s an almost even split when it comes to work location preferences in Canada, but a strong swing away from full-time, five-daya-week office work among people who have tried out working from home. Among those who were shifted to working from home during the pandemic, only 8% want to go back to the traditional model, and the number drops to just 4% among those who were already working from home before the pandemic.
25% 24% 26% 25%
Prefer to work from the office all the time
Prefer to work mostly from the office, some home time
Prefer to work mostly from home, some office time
Prefer to work from home all the time
Fewer Canadian pre-retirees and retirees feel positive about retirement in 2023 (73%) compared to 2018 (80%) — but the 28% of survey respondents who have taken the time to create a written financial plan feel much better prepared than those who haven’t. The effect is especially pronounced for pre-retirees.
PRE-RETIREES: How well prepared for retirement do you feel you are? RETIREES: How well prepared were you for retirement?
Eric Lidemark’s first day in the life insurance industry was challenging. However, the principal of Lidemark Financial Group Inc. in Surrey, B.C., and new Advocis chair says it taught him a valuable lesson and kicked off a lifelong friendship.
Back in 1977, Lidemark’s manager at London Life, Paul Coridor, CLU, arranged a 7 p.m. meeting with policyholders. Lidemark and Coridor arrived right on time, and the wife, who had set things up, ushered them in. The husband, however, wasn’t expecting them. As they all sat around a table working on a needs analysis for the family, the husband became increasingly uncooperative. Coridor assessed the situation, closed his books, and said simply, “I guess now is not a good time. Thanks. We’ll leave.”
“We were in and out of there in a very short period of time,” Lidemark recalls. “We got in his car and Paul said to me, ‘Well, there’s your first day. It’s all uphill from here!’ It was such a good lesson in that you can’t make everybody happy, and you have to accept the reality of what it is, and you let it go and you carry on.”
Coridor was Lidemark’s manager for five years, his first mentor, and the best man at his wedding. He encouraged Lidemark to earn his CLU, and Lidemark did so with distinction, winning the Leslie W. Dunstall Award for CLU® Studies when he got the best mark in British Columbia.
Despite an inauspicious first day on the job, Lidemark, CLU, CFP, CH.F.C., CHS, soon grew to love his profession. He enjoyed having the opportunity to continuously learn and grow, and he became a manager. He also appreciated the CLU chapter meetings Coridor invited him to, and the generous camaraderie of the business. Today, he prizes the fact that he’s built 30-plus-year relationships with both colleagues and clients.
Including his years with London Life, Lidemark had three separate management careers before becoming an independent producer in 2000.
Founding Lidemark Financial Group Inc. gave him freedom and allowed him to control his own destiny — but it also meant he was wholly
He’s volunteered for almost every role within Advocis. Now Eric Lidemark tells Alison MacAlpine what he hopes to accomplish as chair of the board
responsible for finding a successor to take care of his clients. After buying 15 books of business over the years, he’s now spent a decade organizing the orderly transition of his own business to younger advisors. But he worries many advisors of his generation aren’t spending enough time on succession planning.
“In Canada, there are probably thousands, maybe tens of thousands, of orphan clients — people with no advisor — and it doesn’t look good on our business,” he says. “Advisors talk to clients about retirement all the time, but don’t make a plan for themselves.”
In addition to his succession plan, Lidemark has created two emergency transition agreements, one for the investment side of his business and one for the insurance side, that will activate if he isn’t able to carry on his responsibilities. Notifications will go out right away to clients introducing them to his two (investment and insurance) successors. No one will be orphaned.
Lidemark seeks out opportunities to speak about advisor retirement, working to raise awareness and explain what needs to be done. He believes succession planning is one of the biggest challenges facing the industry.
Throughout his career, Lidemark has also advanced the profession by stepping up, again and again, when asked to sit on an industry board.
He became president of the BC Mainland CLU Chapter in 1988, winning the DeHaerne Award for best chapter. As treasurer of the Advocis Greater Vancouver Chapter in 2003, he worked on the integration of the Vancouver chapter of the Canadian Association of Insurance and Financial Advisors (CAIFA) and the BC Chapter of the Canadian Association of Financial Planners (CAFP) into Advocis.
In business and in life, Eric Lidemark tries to live by four Rs: reliability, responsibility, respect, and resiliency. The first three came out of a conversation with his son about a few key words that can steer you through life. The fourth occurred to Lidemark during the pandemic.
“I realized that my peers in this business, we’ve all been around a long time and we’ve all had our share of difficulties, tough times … or even reversals of fortune. But we carry on. To me, that’s resilience,” he says. “We have to find a way to get through it, survive it, live with the results, and try to do better the next time.”
Randy Reynolds, CLU, for his Advocis involvement. At a fateful meeting in a parking lot in Vancouver in 2000, Reynolds told him he needed some help.
I don’t want to be president!” Lidemark replied.
He was president of the Advocis Greater Vancouver chapter in 2005 and chair of Advocis’s Chapter Leadership Council in 2011, followed by a stint as a trustee for The Institute for Advanced Education. In 2015, he chaired the inaugural Strategies for Success, a sales conference for insurance and financial advisors in Vancouver. On the Advocis Board of Directors, he served as treasurer, governance chair, and vice chair before becoming chair.
“[Advocis president and CEO] Greg Pollock introduced me to a new Advocis employee once, saying ‘This is Eric Lidemark. I think he’s done just about every job there is to do as a volunteer in this organization.’ I went, ‘You know what? I guess that’s true!’” says Lidemark.
He sees himself as an “everyman” in the business — an advisor who works with families and small businesses with down-toearth financial issues to solve. What happens if I die? What if I get sick or disabled? Am I saving enough for retirement?
To this day, he doesn’t require a minimum level of assets. He just wants to make sure the client appreciates him and
Continued on page 16
“OK, but
Empire Life congratulates Eric Lidemark, CFP, CLU, CHS, on his election as Chair of Advocis. He has been instrumental in providing financial security solutions to Canadians for more than three decades.
Empire is proud of its association with Eric over many years, and is appreciative of his service to clients, to the financial services community, and as a volunteer and long-time committee member in many industry venues.
Celebrating 100 years of helping Canadians build wealth, protect their financial security and achieve physical, mental and financial health.
Insurance & Investments – Simple. Fast. Easy empire.ca info@empire.ca 1 877 548-1881
Continued from page 14
his style and will interact with him in an honest, ethical, and straightforward manner.
One of Lidemark’s defining characteristics may be that he is as comfortable mingling with the senior corporate executives who serve alongside him on the Advocis board as he is hanging out with clients on a golf course or buddies around a pool table.
He sees it as a strength that a diversified group of people with vastly different skills and experiences sit with him on the board: “It’s valuable for the members to see we can be a membership organization for a wide variety of people — and our example is your board. We want to be representative of our membership.”
During his tenure as chair, Lidemark will focus on strengthening governance. This year, instead of having the secretary head up the Governance Committee, the board has appointed a committee chair who is not on the executive. The committee chair will work closely with the secretary, bringing to the table a wealth of governance experience acquired at other organizations.
The board is doing something similar with the Finance and Audit Committee. In that case, the committee chair is a Chartered Professional Accountant who will collaborate with the treasurer, sharing specialized knowledge essential to the financial oversight of the organization.
In addition, Lidemark has arranged for every board member to join the Institute for Corporate Directors (ICD). That organization provides free seminars and education that Lidemark is confident will elevate everyone’s understanding of governance.
To advisors who are considering following in his footsteps and participating actively in their professional association, Lidemark says, “Just get involved.”
“Get on a committee. Commit to one hour a month. … You’ll meet great people, because you have common interests [and] you’ll be happy with yourself, your personal growth, and your knowledge of the industry.”
We’re excited to celebrate Eric Lidemark , a Vancouver Advisor committed to enriching the lives of Canadians.
Congrats Eric, we look forward to seeing you shine in your incoming role as Advocis Chair!
“It’s valuable for the members to see we can be a membership organization for a wide variety of people — and our example is your board. We want to be representative of our membership.”
Congratulations to Sonia Wu and Bertrand Potvin who have been inducted into the Sun Life Hall of Fame.
Sun Life is pleased to congratulate Sonia Wu and Bertrand Potvin for their induction into our Hall of Fame, our highest honour recognizing outstanding personal success.
Sonia Wu is a trailblazing leader who has inspired countless industry professionals and members of her community since joining us in 1996. Under her leadership, the management team in Vancouver Pacific Rim has twice won Sun Life’s Excellence Cup for outstanding performance. She is the first woman in Sun Life’s history to achieve this prestigious award for her district.
Sonia serves on the GAMA board of directors and is a longstanding member and guest speaker with Advocis. She has consistently achieved the National Quality Award for business excellence and is a strong supporter of numerous local causes. In 2014, she was recognized by the Insurance & Investment Journal as one of the 50 women of influence in Canada’s life insurance Industry.
In recognition of her achievement, Sun Life has made a donation in Sonia’s name to the Burnaby Hospital Foundation Dragon Gala.
Sonia Wu, MD, CHS™District
Director, Sun Life4720 Kingsway Suite 1900
Burnaby, BC V5H 4N2
604-430-6393
Bertrand Potvin, an industry veteran, has helped Clients build lifetime financial security for over 42 years. Through his team-based approach to delivering excellent Client service, Bertrand has achieved company sales records and influenced the success of his fellow advisors. Located in Rimouski, he provides both insurance and wealth solutions to Clients across the Bas-St-Laurent area.
Bertrand served as president of the Association of Life Insurers in 1984 and is known by accountants and tax specialists throughout the industry. He’s mentored many successful Sun Life advisors, has been featured in company events and is a longstanding sponsor and volunteer for several organizations in his community.
To honour his accomplishment, Sun Life has made a donation in Bertrand’s name to the Bas-St-Laurent chapter of the Multiple Sclerosis Society of Canada.
Bertrand Potvin, A.V.C.*Financial
security advisor, group insuranceand group annuity plans
advisorand mutual funds
representativeAssurances Bertrand Potvin inc.
97 Saint-Germain Street East Rimouski, QC G5L 1A5 418-723-7878 ext. 203
bertrand.potvin@sunlife.com
Rachelle Langlois’s client was a year away from running out of money. This widow in her 80s may have been experiencing early-stage dementia, and while her doctor determined she was still mentally capable of handling her finances, she became confused by the threats and promises of phone scammers. She refused to tell her family she was draining her savings, much less the police, despite pleading from Langlois.
“When I started in this business nine years ago, I was in my early 30s. So I had a lot of younger clients,” says Langlois, CFP, CHS, financial planner at Silver Path Financial Solutions in Cranbrook and Kimberley, B.C. Then, she inherited some older
clients from a retiring advisor and was suddenly dealing with different and sometimes challenging scenarios. “This was a new situation for me.”
When a client is showing the signs of dementia or has been diagnosed with a condition such as Alzheimer’s disease, it has a significant impact on their financial decision-making abilities and their financial needs. That, in turn, leads to different demands and responsibilities for advisors.
“This has been a really big learning experience. I don’t think the industry talks about it enough,” says Langlois. After consulting with her company’s legal department, doctors, and the family — she didn’t even have a means to get in touch with them
With the number of dementia cases rising in Canada, Diane Peters explores how advisors can better support clients experiencing cognitive impairmentPHOTO: ISTOCKPHOTO
at first — she’s now stopped giving the client money to protect the rest of her nest egg.
As well, Langlois has been looking to educate herself on cognitive impairment. She sees it as a path toward growing her business, in addition to a way to better navigate supporting such clients. “It’s really an opportunity to differentiate ourselves, and also further help the clients and the families that we’re working with.”
“Cognitive impairment is part of every financial planner, financial advisor, and wealth industry professional’s portfolio, whether they know it or not,” says Toronto-based Laura Tamblyn Watts, founder and CEO of CanAge, a national group advocating for the rights of seniors.
It’s estimated that by 2030, nearly a million people in Canada will be living with dementia, an umbrella term for a set of symptoms that include memory loss, difficulty with thinking, and personality changes. Alzheimer’s disease is the most common cause of dementia, responsible for 60% to 80% of cases, but there are numerous others.
People diagnosed with dementia may need years of hands-on care to stay healthy and safe, which can put extra pressure on their finances. Critically, dementia, along with addictions, mental illness, and traumatic brain injury, can change a client’s ability to deal with money. As a result, it’s vital for advisors to learn about conditions that affect abstract thinking and planning, and adjust accordingly, Tamblyn Watts says.
“Advisors have the obligation to ensure that people understand the information they’re given and the implications,” she emphasizes, adding that financial advisors might see early stage cognitive changes before family members. That’s because it takes an average of 10 years for a formal diagnosis, but abstract reasoning can be affected first. “[Advisors] may notice it in a person who otherwise seems just fine.”
Recognizing the early signs of cognitive impairment doesn’t mean cutting clients out of discussions, stresses Marjorie Moulton, who runs Victoria-based We Rage We Weep Dementia Consulting. She says even clients with advanced disease can often participate in planning — but advisors should use plain words, and as few words as possible, plus simple visual aids, if possible.
“I’ve worked with people who remain very capable deep into their disease. We need to be careful about not writing people off and keep them involved as long as possible,” Moulton says.
Even if someone has severe impairment, speak directly to them, she advises. “Include them in the conversation, keep eye contact with them, ask them questions. Just because they lose capacity doesn’t mean that they become part of the background. That’s where it gets very dehumanizing.”
That said, advisors may want to include clients with more severe disease in big-picture meetings only, and work separately with their designated representatives to deal with more detailed, complex planning. “Separate out those meetings with your clients to what is appropriate,” Moulton suggests.
Keeping clients with cognitive impairment involved in their finances may mean it’s necessary to schedule longer advisor appointments.
“Slow things down a bit,” says Betty-Anne Howard, CFP, CLU, CHS, CEA, MFA-P™, with Athena Wealth and Legacy Solutions in Kingston, Ont. “Normalize trying to understand by saying, ‘This is a whole other language, which, at the best of times, isn’t the easiest thing to understand.’”
Send documents in advance, adds Camryn Berry, knowledge transfer and exchange associate with the Alzheimer Society of Canada, and make sure the client gets reminder calls about financial appointments, even if someone is picking them up. Tamblyn Watts also recommends appointments earlier in the day, when such clients will likely be at their best. Know that some days are better than others, Moulton says, as cognitive skills are fluid.
Keep in mind that clients and families can be emotional at various stages of coping with dementia, from the shock of diagnosis to, perhaps, needing to move someone into long-term care. Howard says it’s important to resist the urge to dismiss feelings and say everything will be fine. “Be comfortable with being present with the emotions and have some empathy for what they’re going through.”
With families, Howard also suggests going slow, especially if they’re just getting used to taking the reins.
When you suspect cognitive changes, work quickly to ensure documents are in order. “As early as possible, have conversations and find out what they really want to happen to their money and their health,” suggests Berry.
Howard creates a holistic financial plan for all her clients out of the gate. “It’s really good to have something that we can refer back to and know that we already talked about it,” she says, explaining that the plan informs conversations with families who take over finances on behalf of a client. She always steers them away from strategies that don’t align with the plan.
Langlois says it was more difficult to support her scammed senior client because she didn’t yet have a trusted contact person (TCP) — someone the Canadian Securities Administrators now recommends appointing for every client. When possible, aim to have the TCP not be the client’s designated power of attorney.
“Everyone should have [a TCP] on file,” Langlois says, and she is more focused than ever on obtaining one for all clients. “They can’t make decision about accounts or change anything. It’s simply someone on file that you can contact if you’re concerned.”
Arrange with clients to work with a lawyer to set up an enduring or continuing power of attorney, which will allow a representative to manage their money when they are no longer able — a doctor will determine when the person is no longer mentally capable. Depending on where you live, power of attorney documents may cover off financial concerns and decision-making about a person’s health. Some provinces may require personal or health directives, representation agreements, or mandates to transfer that power.
Updating the will as early as possible is critical, as someone with power of attorney cannot do this. “It can be helpful to put together a visual family tree,” says Tamblyn Watts, who recommends such a tree include pictures, plus labels to indicate where
people live and perhaps information regarding when and where the client often sees this person.
The person who holds power of attorney also cannot change beneficiary designations for insurance policies, pensions, or registered accounts. “I review that with every senior client every time I meet with them. Once their mental capacity changes, they may no longer be able to change the beneficiary designation,” says Langlois.
In addition, advisors should itemize all of a client’s assets and accounts — including bank accounts, credit cards, loans, pensions, cemetery plots, and insurance policies — and be sure the paperwork and passwords are stored somewhere safe but accessible.
Provincial legislation offers protection for vulnerable adults, and Langlois looked to B.C. laws when she needed to make tough decisions about the finances of her client who was being exploited financially. “In some cases, confidentiality rules can be breached if you’re protecting a vulnerable client,” she points out.
Berry says joint accounts and credit limits on credit cards may offer further protection against scammers, who are becoming increasingly pervasive and sophisticated.
Something else that can happen, sadly, is financial abuse from friends or family, and Berry says advisors should watch for signs of possible financial abuse, such as sudden changes in
plans or a sense of urgency about a decision. As many as 12% of Canadian seniors with dementia are victims of elder abuse, the most common being financial abuse.
Meanwhile, even the most caring of families can get distracted by their own financial concerns when deciding what to do about, say, a senior’s valuable property. “We make it abundantly clear to people that our first priority is to take care of our clients,” stresses Howard.
There’s a tremendous upside to getting all of this right. Advisors who learn more about cognitive impairment and its impact on financial planning may see more opportunities to help clients and their families — and grow their practice.
“People who care about meaning and relationships, this is where the satisfaction in being an advisor comes from,” says Tamblyn Watts. “If you get good at this, you will gain more clients and you’ll be helping people out.”
It’s estimated that by 2030, nearly a million people in Canada will be living with dementia, an umbrella term for a set of symptoms that include memory loss, difficulty with thinking, and personality changes.
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Jason Desaulniers, CFP, CLU, CIM, CHS, founder of Excalibur Executive Planning in Edmonton, has been challenging himself in obstacle course races (OCRs) since 2018 — think extreme races that include wall climbs and sandbag-carries, like the 50-kilometre Spartan Ultra or the 60-hour Agoge. But last November he took things to a whole other level. He and his partner, Chantal Lacasse, who met at an OCR race in 2019, completed an OCR at Everest base camp in Nepal that ended up being a Guinness World Record-earning event for the greatest ascent and descent on an obstacle course race (3.019 kilometres).
Desaulniers, 48, who started in the financial industry in 1996 and founded Excalibur in 2007, has travelled the world to do these races, heading to such places as Abu Dhabi, Sweden, and Greece. What attracts him to OCRs is the challenge.
“I like to test my ability to see how far I can push myself physically and mentally and get through it,” he explains. “There are a lot of opportunities
to solve problems or overcome obstacles; physical obstacles, for sure, but also mental ones like maps to decipher, clues to uncover, or memory tests to do as part of these things. Quite often, there’s a fair bit of risk mitigation as well.”
Excalibur’s speciality is helping business owners by creating risk management and estate planning strategies and comprehensive investment solutions, and Desaulniers sees this work as something that’s helped prepare him for these races.
“I’ve been an advisor a lot longer than I’ve been an endurance athlete, and being an advisor has helped me become a better athlete,” he notes.
“Both roles definitely require of a lot of mental fortitude, a lot of grit, [and] the ability to overcome obstacles. As an advisor, a lot of those obstacles are mental obstacles — dealing with people [and] with the challenges of operating a business.”
But it goes both ways, he says. Having mental fortitude, which he has honed via OCRs, has helped him support clients in crisis.
“When I’m dealing with clients that are going through challenging times, … I can draw on those tools and techniques [learned in races] to help them with getting through their journey.”
These financial advisors have delivered top-level performance in sport. Alex Mlynek investigates crossover lessons from athletics to planning work and back again
Adrienne Power, financial advisor with Edward Jones in Halifax, achieved tremendous success as a track-and-field athlete. A 10-time Canadian champion, she won bronze in the 200-metre sprint and silver in the 4x400-metre relay at the 2010 Commonwealth Games. She was a member of Team Canada from 2003 to 2013 and also competed in the 2008 Beijing Olympics.
As a finance and international business major at Dalhousie University, Power became a highly decorated varsity athlete. In 2005, she won overall Female Athlete of the Year across all Canadian universities. Since she graduated in 2005, she has worked in the finance sector, aside from the six years when she was a professional athlete. Even then, she drew on her financial skills, becoming very involved in corporate partnerships and business development.
“I had to become effective at partnering with organizations, because in Canada it is difficult to make a living and meet all needs en route to international athletic success. I was fortunate to partner with 17 sponsors during my career as a high-performance athlete,” she explains.
Power retired from professional sports in 2013, and in 2019 dedicated herself to a career as a financial advisor, joining Edward Jones because it fit her passion of helping people in her community. “It just came down to how am I really supporting the community of Nova Scotia? How can I really be impactful to individuals and help them have a better life?”
Power, 41, says the effect her parents’ divorce had on the family’s finances showed her how important it was to have financial security, and being an advisor was a way to help others achieve this. Now she specializes in helping business owners and families with wealth transfer and estate planning.
She credits her success in sport and business to her ability to continuously adapt and focus on all the small things that go into achieving the big things. As an athlete, that meant mastering her training program, recovery, and diet, and also incorporating downtime with family and friends. There are parallels balancing work and life in her current role, and sport has given her the tools to partner with clients for financial freedom.
“It’s the relentless effort toward achievement and being uncompromising toward our goals. That has not changed. It’s the exact same thing. No matter if it is as an athlete or as a financial advisor.”
Ross Ferrier, CIM, FCSI, PFP, branch manager and investment advisor with CIBC Wood Gundy in Thornhill, Ont., was drafted by the New York Mets as a University of Waterloo student, and played outfield in the minor leagues. But after three seasons he decided to try a new career, and came back to Canada to be an advisor. Twentyfive years later, he’s very happy with his choice.
“Looking back, I made the best decision in my life. I’m doing something that I truly, truly love — I’m helping people. I had a great experience playing baseball and I left on my own terms,” he says. “I’ve been very blessed. Because my focus is the same as it was when I played
sports. I’m very competitive with myself and always want more of myself.”
Ferrier, 52, notes that playing professional baseball offered several lessons that have helped him in his current career. It taught him how to deal with people who have different belief systems or difficult personalities. It also gave him the confidence to introduce himself to new clients, a strength developed at media days when players went out to chat with the press and fans. Those experiences came in handy when he was doing cold calls to build up his book.
However, Ferrier, who now works with highnet-worth and ultra-high-net-worth clients, doesn’t credit sports for all of his success.
“There’s a lot of other people in my industry who have been very successful at other endeavours, whether it’s sports or the arts. The real common thread is that those are people who have high standards for themselves in terms of their personal accomplishments and what they want to achieve. And they generally are people who are willing to challenge themselves and put themselves in positions that make them vulnerable, where there might be a degree of fear,” he says.
“I think to myself, even to this day, Ross, if you’re not having a bit of fear, then you’re probably not challenging yourself to grow.”
ALIREZA FADAIE Advisor and Martial Arts PractitionerAlireza Fadaie, PFP, CHS, QAFP, and president of Westlife Financial Services, Coquitlam, B.C., has been involved with martial arts since he was six years old. “I used to go to karate class with my dad, who was a green belt at the time,” he says. But Fadaie, 45, started training seriously when he turned 18. That work has paid off in a number of ways.
Fadaie, who immigrated to Canada from Iran in 2003 and specializes in Kyokushin karate and kickboxing, won a silver medal for Canada at the 2008 and 2012 World Organization of Martial Arts Athletes’s World Martial Games.
But aside from this recognition, martial arts helped him in his financial-world career, in part because of the attitude it helps cultivate. “Martial arts keeps you healthy. It keeps you humble. It gives you resilience, a fighting spirit, and selfconfidence, for sure,” he says.
The latter was key for Fadaie, who says he was quite shy and lacked confidence growing up. Having this type of training also helped him develop the discipline to keep at things even when they are tough, he notes. For example, he joined Investors Group (now IG Wealth Management) as an advisor right before the Great Recession hit in 2008, and he had to transition to working on commission versus getting a paycheque.
“It’s not easy at all,” he says. “I mean, you don’t know when your next paycheque is coming, right? So it took me many years, but I got better at it by not giving up.”
Fadaie launched his own firm, Westlife, in 2017. Since then, he’s used martial arts in his branding and has written two books that incorporate martial arts metaphors to teach personal finance (Personal Finance Mastery: How to get a black belt in managing your money and Black Belt Money Management: A practical guide to personal finance for Canadians). He even trademarked the term “Financial Sensei” in Canada.
“Creating a unique message has definitely helped me to differentiate myself from other people who are in the industry,” he says.
PRESENTED BY
Cindy was a Trustee of The Institute and member of the Life Underwriters Association of Canada (LUAC) National Board of Directors from 1982 to 1988.
In 2003 she became a Trustee and Vice Chair of the Board of Trustees for the Institute for Advanced Financial Education. She was Chair of the Institute from 2006 to 2008 and Past Chair for another 2 years.
In addition to chairing nominations for the Institute for 4.5 years she oversaw and recruited volunteers for 16 Institute committees and task forces until she retired from The Institute in 2011.
While Institute Chair she sat on the National Board of Directors for Advocis as well as numerous Advocis sub-committees for 2.5 years.
Cindy has been involved with the Conference for Advanced Life Underwriting (CALU) since its inception
in 1991. She has been on the Group Benefits Issues, Finance/Audit/Investment and Annual General Meeting committees over the years.
She is on the Board of Directors for a non-profit long term care facility in downtown Toronto where she also sits on the Finance and Audit, Governance and Project Management committees.
Cindy was Chair of the Board of Directors responsible for alumnae and fundraising at Trinity College in the University of Toronto, a member of the St. Michael’s Hospital Foundation Board of Directors for 10 years, and Chair of her children’s school council.
She loves spending time with her children Alex and Emily and will celebrate her 40th wedding anniversary this year with husband Steve Hisey.
With more than 5,000 CLU® and CHS designation holders in good standing. The institute for advanced financial education is the leading designation body in canada for financial services practitioners in the specialty areas of advance estate and wealth transfer, and living benefits. The institute provides a platform of standards and advanced knowledge through designation programs and accreditation services. Institute destinations speak powerfully of a practice that is built on knowledge and a belief in the continuous refinement of that knowledge.
Award recipients have demonstrated excellence among their peers. they have made an impact on the profession and the public they serve; exemplified the Institute’s code of professional conduct; positively affected their communities; participated in the industry, with either the Institute or Advocis; and/or within other financial services professions.
From the time Dale joined London Life in 1974 fresh out of the University of Calgary, he has been an active leader in the industry and his community. He has enjoyed tours of duty as President of the Calgary Life Underwriters Association and the Calgary Estate Planning Council, national director and Treasurer of the Life Underwriters Association of Canada, director of FPSC, Chair of the CLU Institute, Chair of the Canadian MDRT Foundation and initial Chair of the Century Initiative. He held membership in MDRT, CALU and STEP for more than 2 decades.
Today, Dale chairs the board of cSpace Projects Inc., a community owned social venture that develops and operates real estate properties which serve as artist, cultural and community hubs. A long time and current volunteer with the Calgary Foundation, one of Canada’s largest community foundations, he concluded his board service as its Chair.
Dale has been a speaker with Advocis, the Banff School and the main platform of MDRT.
An avid cyclist, Dale is a multi-year participant in the Ride to Conquer Cancer. Through his circle of clients, friends and family, he has raised over $100,000 for the cause.
Dale runs a boutique financial and estate planning business, Blaeberry Estate Planning, working with great people contributing to their improvement and growth. His practice is in transition as he moves towards retirement.
Married to Cathy, they are the proud parents of the light of their life, daughter Georgia.
After a good long run, Dad died midway through his 99th year. Mom and us kids will miss him dearly, but it was his time.
Customarily, everything would roll over to Mom, the sole beneficiary, who is nearing her mid-90s. This approach gets around the tax on deemed dispositions at death that would otherwise erode Dad’s estate. But could we do better for her?
It’s a mantra of financial planning that, whenever possible, it’s best to arrange beneficiary designations and joint accounts to allow streamlined continuity to a spouse. But it’s important to pause and consider whether to opt out, particularly for deaths early in the year. Dad died in January, with only a couple of weeks of income, so there remained plenty of room to make use of his basic personal credit and low-bracket tax rates.
Here are some of the steps we took.
To begin, we gave notice to the administrator of the defined benefit pension that was my parents’ primary income source. As surviving spouse, Mom will continue with a reduced pension, underscoring the need to be tax-conscious with her other income sources. There won’t be any residual value when she dies, but with the two of them living well into their 90s, they got their fair actuarial share out of the deal.
Mom handled the house when we were youngsters, followed by a lengthy run as a school trustee. Dad took early retirement at age 60, then kept busy with teaching and consulting gigs into his 70s. Thus, despite having a dependable pension, both had moderate accumulation in Registered Retirement Income Funds
(RRIFs), each naming the other as beneficiary. Their financial advisor (a friend to us all) readied the paperwork to roll Dad’s RRIF to Mom.
Acting under power of attorney (POA), we instead declined the receipt of the RRIF on Mom’s behalf. Accordingly, the amount will be included in Dad’s finalyear income, soaking up the remainder of his basic personal credit (i.e., at zero tax), with the rest subject to the lowestbracket rate.
In their later years, we have been managing all of my parents’ finances under POA. This included providing instructions on taking the minimum RRIF withdrawal early in the year. We hadn’t yet had this year’s meeting when Dad died.
The RRIF minimum, based on the preceding year-end value, must be paid in the following calendar year. According to the Canada Revenue Agency and the administrator’s practice, because it had not been paid before Dad’s death, that portion had to be paid and taxed to Mom as the named beneficiary (though, as noted above, the bulk had been declined, to be taxed with Dad’s final-year income).
One great thing about a Tax-Free Savings Account (TFSA) rolling over to a spouse, is that it continues to be a TFSA without requiring or using up the receiving spouse’s TFSA room. However, unused TFSA room does not roll over to a spouse or to anyone else. Fortunately, Mom and Dad were consistent TFSA contributors, and the combined amounts were now in Mom’s hands. That said, there was some lost room for Dad’s final year because he had not yet made the year’s contribution.
BY DOUG CARROLLFor registered accounts in Ontario (and most common-law provinces), attorneys under POA cannot initiate or change beneficiary designations. However, many financial institutions will carry over an existing designation on an incoming registered plan. This was helpful as we were consolidating financial holdings at a time when my parents’ faculties had significantly declined.
Unfortunately, Dad had one small TFSA without a designation. As we could do nothing about it, probate was inevitable for Dad’s estate. On the bright side, it bolstered our decision to allow the RRIF to fall into the estate, with the projected income tax savings well exceeding the nominal bump in probate tax.
The proceeds from Mom and Dad’s home sale years ago went into their joint non-registered investment account. That money helped service their later accommodations, while also appreciating nicely. This account bypassed probate, with Mom continuing as sole legal and beneficial owner by right of survivorship.
By default, capital property rolls over at the adjusted cost base to a spouse on death. This applies when the capital property is held in a joint account, as in this case. It would also have applied if Dad had an account under his name alone that was then migrated to Mom as estate beneficiary (as long as the individual securities in the account were not sold in the process).
Alternatively, Dad’s estate can elect out of the automatic rollover, on a per-property basis. This will allow us to optimize for Mom’s future needs by choosing which securities to roll over, and which to have taxed on Dad’s final return. As Mom could conceivably blow right past Dad to the century mark and beyond, that extra financial flexibility will be welcome comfort for her as she moves into this next chapter.
Until recently, the alternative minimum tax (AMT) operated under the radar for most taxpayers. However, changes proposed in the 2023 federal budget greatly elevated awareness, although the overall effect should be to reduce the number of taxpayers exposed to AMT. The proposed AMT changes (with some modifications) were included in draft legislation released in early August by the federal government. Here’s a high-level overview of how AMT works, the changes described in the August package, and how the new rules may affect tax and estate planning in the future.
Individuals are generally subject to AMT when their regular federal tax is less than the amount of tax payable under AMT. AMT currently applies at a rate of 15% of an individual’s adjusted taxable income (ATI) less a basic exemption of $40,000, which is then reduced by certain non-refundable tax credits.
An individual’s ATI is determined by increasing the individual’s taxable income (computed in the regular manner) to adjust for certain types of income (and deductions/ tax credits) that allow for preferential treatment (such as increasing the 50% inclusion rate for capital gains and disallowing tax shelter deductions). If the tax payable on the individual’s regular income is less than the tax payable under AMT, the individual must pay the AMT amount.
The amount by which an individual’s AMT exceeds regular tax payable in any particular tax year creates a tax credit, which can be carried forward for a period of seven years and may be available to reduce regular federal tax.
A number of changes will be made to the AMT calculation effective in 2024 — most significantly:
• AMT rate will increase to 20.5% from 15%
• AMT exemption will increase to approximately $173,000 in 2024, from $40,000, indexed to inflation
• Capital gains inclusion rate will increase to 100% from 80% (but the inclusion rate for capital gains eligible for the capital gains exemption will continue to be 80%)
• 30% of capital gains realized on the donation of publicly traded securities will be included in income
• 50% of a variety of deductions will be disallowed
• 50% of a variety of carried-over losses (capital and non-capital) of other years will be disallowed
• 50% of non-refundable tax credits will be permitted, including the charitable tax credit
• Graduated rate estates will be exempted from AMT, and qualified disability trusts (QDTs) will be entitled to claim the increased exemption (unlike most other types of taxable trusts)
The changes will reduce the number of taxpayers who have to pay AMT (due to the increased AMT exemption), while increasing the AMT payable by certain high-income taxpayers as a result of the increased tax rate and reduced ability to take advantage of certain tax preferences, deductions, and credits.
Assuming the rules are enacted as proposed, there are a number of planning considerations for individual taxpayers.
First, the new rules only take effect in 2024. Some taxpayers may consider accelerating the realization of capital gains in 2023 (to avoid the increased inclusion rate), as well as the donation of public securities. Other taxpayers may consider deferring the realization of certain income to 2024 (or later years) to benefit from the increased AMT exemption.
Taxpayers may also benefit from spreading out certain transactions over more than one taxation year. This would
allow them to take advantage of the increased AMT exemption over the course of several taxation years and reduce their overall exposure to AMT. For example, instead of selling public securities with significant capital gains in 2024, the sale of shares might be structured to take place over 2024 and 2025.
Note that AMT does not apply to corporations. Some individuals may benefit from establishing a holding company to hold investment properties that may have significant capital appreciation in the future. The various tax and non-tax costs of earning income through a corporation must be weighed against the advantages of minimizing AMT exposure.
It will come as a relief to many that AMT continues not to apply to taxpayers in the year of death. Therefore, current planning strategies for minimizing/funding taxes in the final tax return will not typically need to be modified to minimize AMT. As well, capital dividends remain tax-free under the AMT regime.
Finally, family trusts will continue to be subject to AMT, but trusts other than QDTs will not qualify for any income exemption. These types of trusts may be exposed to greater AMT liability in situations where they retain income/capital gains earned on trust property and/ or have expenses that cannot be fully deducted. This may cause a review of the desirability of these trusts.
As is evident from the above discussion, the AMT proposals may be a game-changer for certain high-income taxpayers in terms of their tax and estate planning. However, any planning to minimize the effects of the proposed changes should only be undertaken with professional advice once the final AMT rules are released.
WANT
Go to MyAdvocis.ca/forum-magazine/
This award represents the very pinnacle of management excellence among GAMA Global Canada members.
Adriana Rogic
Brad Unraw
Darren Rosenberger
David Feldberg
Djebran Mehdawi
Herman Chan
Ioannis ‘John’ Panago
Karl Krokosinski
Pete Gillespie
Ray Zadrey
Scott Grant
Sonia Wu
Shawn Smith
Taha Al-Dabagh
Wes Scott
Yaguang Zhang
This award recognizes outstanding achievement in agency-building, production and field development.
Yaguang Zhang
This award recognizes outstanding achievement in agency-building, production and field development.
Adrian Fung
Adriana Rogic
Angela J. Fu
Brad Unraw
Clarke Duncanson
Daniel Chuang
Darren Rosenberger
David Feldberg
Djebran Mehdawi
Herman Chan
Ioannis ‘John’ Panago
Jason Poulton
Karl Krokosinski
Mark J. Lewans
Pete Gillespie
Scott Grant
Shawn Smith
Sonia Wu
Sonny Sangemino
Taha Al-Dabagh
Wes Scott
This award honours achievement in agency management, particularly increases in production.
Adriana Rogic
David Feldberg
Djebran Mehdawi
Herman Chan
Ioannis ‘John’ Panago
Karl Krokosinski
Pete Gillespie
Scott Grant
Sonia Wu
Taha Al-Dabagh
Wes Scott
Yaguang Zhang
The 2023 GAMA Global Canada Management Awards recognize the highest leadership achievements in Canada’s financial services industry.BY GLENN STEPHENS
Court cases involving the interpretation of wills are coming fast and furious in the wake of legislative developments across the country. While the rules governing this area of the law vary by province, these decisions contain lessons for estate planners in all jurisdictions. Insurance and financial advisors can provide significant benefits to clients by keeping them up to date on legislative changes and making sure they get the legal advice necessary to ensure their wishes are properly documented.
The Ontario Succession Law Reform Act (SLRA) contains comprehensive rules regarding the proper execution of wills. This includes the general requirement that a will be signed in the presence of two individuals (either in person or virtually), who will then sign as witnesses. However, changes to the SLRA in 2022 included a provision stating a will that is not properly executed will still be valid if the Court is satisfied it represents the individual’s testamentary intentions. Two recent Ontario Superior Court decisions came to opposite conclusions on whether documents met this test.
In Cruz v. Public Guardian and Trustee (2023 ONSC 3629), the deceased had written and signed a document purporting to be his will. He then provided a copy of the document to his executor and asked him to have it witnessed. As a result, the will was not validly witnessed pursuant to the SLRA rules. However, based on the executor’s testimony concerning the authenticity of the document and its reflection of Mr. Cruz’s intentions, the Court was satisfied it clearly represented the deceased’s testamentary wishes. The document was therefore admitted to probate. It is unlikely the same decision would have been made prior to the 2022 amendments.
The Court came to a different conclusion in White v. White (2023 ONSC 3740). In this case, the applicant testified his mother was in the process of drafting a
new will at the time of her death in 2022. He submitted that a draft prepared by her lawyer prior to her death should, pursuant to the above-described new provisions of the SLRA, be accepted as her last will. If the Court had agreed, the deceased’s pre-existing 2014 will would have been revoked. In the Court’s view, however, the document in question was merely a draft will, was potentially subject to future revisions, and did not necessarily represent the deceased’s final intentions.
The above cases provide some guidance as to how the Ontario Superior Court will deal with recent legislative changes, but in no way represent the last word. There will be many more cases to come, with decisions that will be very fact-dependent.
In British Columbia, the 2009 Wills, Estates and Succession Act (WESA) continues to generate interesting and often controversial decisions. WESA is unique to B.C., but may represent a growing trend toward giving judges greater powers to revise validly executed wills they feel are inequitable.
The recent decision in Tom v. Tang (2023 BCCA 221) clearly demonstrates this trend. In this case, the deceased left 85% of her estate to two children (the appellants) and 5% each to her other three children (the respondents). The appellants argued they had played a significantly larger role in caring for the deceased in the last three years of her life. The respondents agreed, but maintained their 15% aggregate share was disproportionately low. The Courts ultimately sided with the respondents, with the Court of Appeal increasing their share to 30% of the deceased’s estate. The decision was based in part on the lower court’s finding that all five children were “dutiful, devoted and loving” and had all contributed significantly to the family’s well-being over the years. They therefore had a moral claim to a greater share of the estate. Some might question why a judge,
who does not know the family except through a legal proceeding, and cannot have known the deceased, should be able to substitute his or her moral judgment for that of the deceased. But this is clearly allowed by the legislation.
What lessons can insurance and financial advisors take from these cases? Here are some recommendations.
If your clients have a will, get a copy and review it. If they do not have one, or if their current will is out of date, strongly encourage them to have one prepared. Make a referral to a lawyer if need be. This has of course always been the recommended approach, regardless of current legislation and case law.
The Ontario cases above are part of a national trend toward allowing documents to be treated as valid wills even when they do not meet the formalities of provincial legislation. This should not be taken as encouragement to do wills less formally! A properly executed will prepared by a qualified lawyer is the best way to ensure your clients’ objectives are met — although admittedly WESA and similar legislation might be an impediment.
Finally, you can greatly assist your clients by carefully documenting their estate objectives in your files. This should be a natural part of the insurance planning process in any case, and could be helpful if there is a subsequent will challenge that calls the client’s intentions into question.
GLENN STEPHENS is a retired vice-president of planning services for PPI Advisory and is now an independent consultant in the life insurance industry. He can be reached at gstephens520@gmail.com.
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Philanthropy is a game-changer for your professional practice, especially when clients learn they can convert taxes into charitable gifts. Here are four examples where clients became Accidental Philanthropists® by transforming tax into charity.
1. Offset RRSP tax liability
A 65-year-old divorced business owner had $2 million in his Registered Retirement Savings Plan (RRSP). Like many successful people we meet, he didn’t know more than half of those hard-earned savings will go to the tax department when he withdraws the money or dies. For those in the highest tax bracket in Ontario, RRSP and Registered Retirement Income Fund (RRIF) assets are taxed at 53.5% at death. So, with no taxfree spousal rollover available, this client discovered his RRSP would be worth just $929,000 to his heirs.
He learned from us that instead of paying more than $1 million in taxes, he could donate the $2-million RRSP now, while alive, to a donor-advised fund (DAF), a charitable-giving vehicle where funds grow tax-free and can be distributed to any registered charity in Canada. A DAF can be set up same day, and enables donors to make a charitable contribution without specifying the charities that will ultimately benefit from their gift. The donor receives an immediate donation receipt and can recommend grants (gifts) from the fund over time. The net cost to the donor for this transaction is approximately 3.5% — versus losing more than half to tax.
We also structured a 10-pay life insurance policy, owned and paid for by the DAF. The death benefit earmarked for charity at the client’s life expectancy of age 85 is $3.5 million. Assuming the donor distributes 5% of the charitable assets each year during his lifetime, the DAF will
create a charitable legacy of $4.5 million. Canada Life recently launched the onepay-only “My Par Gift,” the first insurance policy in Canada designed exclusively for charitable giving, making it easier than ever to implement this type of strategy.
2. Offset CPP tax liability
A husband and wife, both 65, are each receiving $1,100 monthly in Canada Pension Plan (CPP) benefits for a total of about $26,000 a year. That money gets taxed, reinvested, and then taxed again. It also ends when the recipient dies. The couple didn’t require the CPP funds to support their lifestyle, so we proposed ways to mitigate taxes now and when death occurs. The CPP Philanthropy™ strategy uses CPP benefits to fund a permanent life insurance policy, creating a substantial windfall for the family and the clients’ favourite causes.
Here’s a quick summary of four ways to implement CPP Philanthropy™:
• $1.4-million policy owned by a charity or DAF with that entity as beneficiary, resulting in tax savings of CPP used for premiums and a large gift
• $1.4-million policy owned personally with a charity or DAF as beneficiary, resulting in $700,000 of estate tax savings
• $1.4-million policy owned personally with the family as beneficiary and donating RRSP/RRIF through the will
• $1.4-million policy owned personally with the grandchildren as beneficiaries, resulting in a perpetual “pension” for the grandchildren or their favourite charities
3. Donate private company shares
Most people know you can donate appreciated public securities to charity and pay no capital gains tax. If your clients own shares in a private company, this strategy allows them to donate those shares to a charity, mitigate taxes, create a substantial chari-
table legacy, and get tax-free money out of their company for the next generation. Here’s how it works. Our client donated private company shares to a charity in their will. At the same time, the company acquired a permanent life insurance policy on the client’s life paid for by the company. At death, the private corporation will use some of the life insurance proceeds to buy back the shares from the charity.
This approach allows the client to make a significant gift to meaningful causes without reducing the family inheritance. It also allows the heirs to continue to control 100% of the corporation. The icing on the cake is that the corporate-owned insurance creates a capital dividend account (CDA) credit, which allows the heirs to withdraw any other available funds up to that CDA balance from the corporation tax free. Note that this strategy can be further enhanced using cash value leveraging, also known as an immediate financing arrangement (IFA).
The patriarch of a third-generation farming family sold a real estate portfolio for $120 million, creating a tax liability of $20 million. We suggested a donation of $40 million to a private foundation, turning the $20 million of tax into $20 million of charity. We then structured a $40-million joint-last-to-die life insurance policy to restore the donated funds to the family. When both parents die, the family will receive the $40-million death benefit to make them “whole.” This strategy was further enhanced using an IFA. Results: $20 million of tax became charity, a $40-million foundation was set up, and the family went from success to significance. A win-win for everyone.
Advisors need to include strategic philanthropy using life insurance in clients’ estate planning. We work with advisors across Canada, helping their clients achieve outstanding results. Please be in touch if we can help you.
MARK HALPERN, CFP, TEP, MFA-P, is CEO of WEALTHinsurance.com and has developed the Power of PlatinumTM program with Jim Ruta to train, coach, and mentor insurance and investment advisors. Connect with him on LinkedIn, where he shares case studies and success stories.
The Institute for Advanced Financial Education honours longstanding CLU® holders – those who have held their designation for 25 years or more—demonstrating a longtime commitment to excellence in financial advice. We are honouring CLU designation holders who are celebrating 25, 30, 40, 50, & 60 year increment milestones in 2023.
Scott Frank Weldon CFP, CLU, CH.F.C.
Garry W. Roberts CLU, CH.F.C.
Larry K. Berdugo CH.F.C., CLU, CFP
John A. Gleeson CLU
Bruce Ronald Brinson CFP, CLU, CH.F.C.
Gerald L. Caine CFP, CLU, RHU
Mobeen Husain CLU
Verna Sophia Francis Howard CLU, CH.F.C.
Paul D. Bajus CFP, CLU, CHS
Ralph U. Brust CFP
Blair Smith CFP, CLU, CH.F.C., TEP
Ainslie O. Winter CFP, CLU, RHU
Frances F. Kwok CLU, CHS
Alexander K. Y. Cheung CFP, CLU, CHFC, CHS
Christine C. Lengvari CLU
Brian J. Seim CLU, CH.F.C.
Howard B. Murphy CLU, CH.F.C.
Donna J. Vollet CFP, CLU, CH.F.C.
Gary W. Jurgens CFP, CLU
Donald G. Muck CLU, CH.F.C., CHS
Grant Chow CLU, CH.F.C., CHS
Dominic Ierullo CFP, CLU, CH.F.C.
Brian E. Shumak B.Sc., CLU, CFP, CHS
Robert J. Crowder CLU
Giuseppe Spinella CLU, CH.F.C.
Brian G. Dupuis CLU
Andrei Sadu CLU, CH.F.C., RHU
Yuen Yuen Chang CLU, CH.F.C. CF
John Adkins CFP, CH.F.C., CLU, CHS
Jeffrey F. Willms CFP, CLU, CH.F.C., CHS
Rhona Konnelly CLU, CSA, EPC
Janice N. James CFP, CLU, CHS
Scott Devries CLU, CHS, CH.F.C,
Douglas V. Nelson CFP, CLU, MFA
Mari-Jayne Woodyatt CLU, CH.F.C.
Jim S. Fockens CLU, CH.F.C., CHS, PFA
Dan R. Hutton CLU, CH.F.C.
Rodney A. Elliot CLU, RHU
Carson R. Thistle CLU, CH.F.C., CHS, TEP
Brian R. Hammond CLU
Dean C Kendall CLU, CH.F.C.
Martyn R. Hall CFP, CLU
Ken J. McKinley CFP, CLU, CH.F.C., CHS
Tina Tehranchian CFP,CLU,CH.F.C., CMI
Garnet G. Morris CLU
Steve L. Stewart CLU
Scott L. Segger CLU, CH.F.C.
Mark D. Jordan CLU
Brian N. Roman CLU, CHS
Robert Romas CFP, CLU, CH.F.C.
Miriam Tam CLU, CH.F.C.
Grayden G. Biffart CFP, CLU, CH.F.C, RHU
Leonard E. Slobogian CLU, CHS, CEBS
Timothy B. Potter CLU, CHS
Ernest J. Warren CLU
Helen J. Francia CLU, CH.F.C.
Harry James CLU, CH.F.C.
Robert G. Pride CFP, CLU, CH.F.C.
Robert A. Kimel CLU
Ross A. Demont CLU
Patricia Fogarty CLU, CH.F.C.
Shelagh L. Daly CFP, CLU, CH.F.C.
30 YEAR
CLU DESIGNATION HOLDERS
Christopher Cahill CFP, CLU, CH.F.C.
Tim J. Lychy CFP, CLU, CH.F.C.
David R. Terpening CLU, CHS
A Jayne Alford CFP, CLU, CH.F.C.
Grant McPhail CLU, CH.F.C.
Brian A. Henley CFP, CLU, CH.F.C.
David R. Sagan CFP, CLU, CH.F.C.
Tom Kirdeikis CLU, CH.F.C.
Carol A. Chambers CFP, CLU, CH.F.C., CHS
Diane Y. Taylor CFP
Davidd A. Lawley CFP, CLU, CH.F.C.
Lily B. K. Lee CLU, CH.F.C.
Tony R. Caron CFP, CLU, CHS, CH.F.C.
Thomas V. Price CFP, CLU, CH.F.C.
Robert R. Edge CFP, CLU, CH.F.C.
Penny A. Towndrow CLU, CHS, CEA
Colin Noble CLU, CH.F.C., CHS
John L. McVittie CFP, CLU, CH.F.C.
Frank Miemiec CLU
Stephanie D. Czachor CFP, CLU, CH.F.C., RFP
Christiane Beaudoin CFP, CLU, CH.F.C.
Brian K. Monaghan CFP
Michael Rigato CFP, CLU, CH.F.C.
Phil Marsillo CLU
Jim R. Kilgour CLU
Glenn A Lester CFP, CLU
Roger GT. Broeke CFP, CLU, CH.F.C.
Damian Borges CFP, CLU, CH.F.C.
George L. Piper CFP, CLU, CH.F.C.
Laurie L. Stephenson CFP, CLU, CH.F.C.
Lorraine S. Lavery CLU, CH.F.C., CEB,TEP
David J. Cox CLU, CHS, CH.F.C.
Mark A. Schulhof CFP, CLU, CH.F.C., CHS
Kathy Lloyd CFP, CLU, CH.F.C.
Richard C. P. Vetter CFP, CLU, CH.F.C.
Susan St. Amand CFP, CLU, CH.F.C.,TEP
Michael D. Bean CLU
Gilles Y. Trahan CLU
David B. Franklin CFP, CLU, CH.F.C.
Andy L. Lambe CFP
Valerie H. Chedore CLU, CH.F.C.
Pierre L. Durivage CFP, CLU, CH.F.C., CHS
Gregory W. Gies CFP, CLU, CH.F.C., CHS
Brian Knoetze CLU
Greg Jizmejian CFP, CLU, CH.F.C.
Jonathen Wayne Mosher CFP CLU, CH.F.C., CHS
Robert L. Favretto CLU
Stephen W. Wiffen CFP, CLU, CH.F.C.
Veena Daddar CFP, CLU, CH.F.C., CHS
Robert L. Eagleson CFP, CLU, CH.F.C.
Brian Ogilvie CFP, CLU, CH.F.C.
Thomas A. Landeryou CFP, CLU, CH.F.C.
Michael G. Sheffar CFP, CLU, CH.F.C.
Carl L. Davidson CFP, CLU, CH.F.C.
Chim C. S. Lam CFP, CLU, CH.F.C.
Lise M. Allin CLU, CH.F.C., CDFA
Floyd L. Collins CFP, CLU, CH.F.C.
John H. Hamilton CFP, CLU, CH.F.C.
Charles E. Symes CFP, CLU, CH.F.C.
Doug Mercer CFP, CLU, CH.F.C.
John L. Kucher CFP, CLU, CH.F.C., CHS
Jeffrey L. Appotive CFP, CLU, CH.F.C.
Murray D. Neilson CLU, CH.F.C.
James M. Galpin CLU, CH.F.C.
Robert H. Wolff CFP, CLU, CH.F.C.
Anthony Katarynych CFP, CLU, CH.F.C., TEP
Michael R. Lecky CFP, CLU, CH.F.C.
George V. Morson CFP, CLU, CH.F.C.
Ralph G. Neumann CFP, CLU, CHFC
David G. Rounthwaite CFP, RHU
Kelly M. Adams CFP, CLU, CH.F.C.
Douglas S. Hood CFP, CLU, CH.F.C., CHS
Gerard A. Arsenault CFP, CLU, CH.F.C.
Douglas R. Planche CLU, CH.F.C.
Eric D. Lidemark CFP, CLU, CH.F.C., CHS
Michael E. Hutsal CFP, CLU, CH.F.C., RFP
Jocelyne Blais CLU
Robert R. Beauvais CFP, CLU, CH.F.C.
Jacqueline A. Fyfe CFP, CLU, CH.F.C., CHS
Amedee Hache CLU
Irene K. R. Bailey CFP, CLU, CH.F.C.
50 YEAR
CLU DESIGNATION HOLDERS
Dennis L. Abbott CFP, CLU, CH.F.C.
Wayne Cotton CLU
Herbert R. O. Braley CLU, CH.F.C.
Richard James Evans CFP, CLU, CH.F.C.
Peter A. Johnson CLU, CH.F.C.
Ronald D. LePan CLU, CFP
Randall B. Reynolds CFP, CLU, CH.F.C.
William John Harris CFP, CLU, CH.F.C.
Robert J. Cowan CFP, CLU, CH.F.C.
A. Drummond Brown CFP, CLU, CH.F.C.
60 YEAR
CLU DESIGNATION HOLDERS
Thomas P. McQuillan CFP, CLU, CHS
For more information on the CLU designation, please visit www.iafe.ca/clu
Holding a CLU designation is proof of commitment to higher standards. Even under the most difficult economic circumstances, longstanding CLU designation holders have continued to help Canadians build and preserve their wealth.
Ihad the pleasure of attending LAMP 2023 in Las Vegas this year, and it was worth every minute and every penny.
The conference attracted leaders from around the world, with participants learning and connecting at 69 sessions held over three days. The biggest challenge was trying to be in two or three places at once!
I’ve often said there are no secrets in this industry — just insights you haven’t yet encountered. Every year, LAMP provides an opportunity to hear some of those insights from industry experts you wouldn’t otherwise meet. LAMP is about learning, sharing, and being totally transparent to help us all raise our game.
The issues that face one firm are the issues faced by all, and LAMP is a wonderful venue to discuss them openly. At LAMP, we are not competitors. We are partners in the industry, all searching for answers and strategies to do our work at an even higher level.
There were so many quality sessions and speakers at the conference. My notebook was full, but here are a few quotes and themes I brought home with me.
“Lions don’t dream of hunting. They just hunt.” Eszylfie Taylor, founder and president of Taylor Insurance and Financial Services in Pasadena, Calif., offered that powerful analogy — one that highlights a key ingredient of success for many in the business.
Ken Dychtwald, founder and CEO of Age Wave, based in Orinda, Calif., provided great insights about aging. Empty-nesters and people in retirement will have more than 50 trillion hours of free time over the next two decades. Gone is the “beginning of the end” mindset; for clients, the overriding perspective is that this is simply a new chapter in life. As advisors, we must all deepen our understanding of the true concerns and realities of those who are transitioning to this phase of their life. It’s no longer enough to simply do an income projection to age 90.
Many speakers touched on an overriding theme of “culture.” Dave Porter, owner and managing partner of Baystate Financial, headquartered in Boston, attributed his firm’s growth and success to culture and a relentless focus on driving it. His advice was to ask each advisor to give you one problem they’re having trouble with and then deal with it. “Culture trumps strategy,” he said.
Ryan Wood, regional vice-president of Equitable Advisors in Dallas, recommended asking your team three key questions:
• If you could describe our culture in three words, what are they?
• What ideas do you have to improve our culture professionally, personally, or just for fun?
• What ideas do you have to help us improve as a team?
Meanwhile, Toronto-based Adam Mamdani, vice-president, proprietary distribution, for RBC Insurance, underscored how culture drives advisor loyalty through disruption and times of change.
Randy Little, associate director of Desjardins Financial Security Independent
Network in Ottawa, addressed the topic of teaming and succession. He emphasized that teaming allows the principal advisor to focus on what they love about what they do. As a result, everything else improves, making for a more effective and lucrative succession plan.
Hilda Tang, senior vice-president of strategy & enablement at Sun Life Financial in Toronto, helped all of us understand why being a digitally enabled advisor is important for the firm, the advisor, and the client.
Caesars Palace provided a great backdrop for a stellar event focused on learning, sharing, and celebrating, and it was priceless to see pillars of the industry face to face. As a leader in the industry, your attendance at LAMP is imperative. Participants acquire insights and learnings that help shape future strategies, and the experience is top-notch. LAMP 2024 in Denver is waiting.
As part of the 2023 Chapter Leadership Conference, Advocis was pleased to recognize volunteers from coast to coast as Volunteers of the Year (2022) for outstanding contributions in service to our membership, communities, and professionalism.
Jayshri Patel-Amin
“
Volunteering is the very fabric that connects us, breathes a sense of belonging, a community of like-minded individuals that creates a movement for future generations. Advocis is not only advocating for our profession as independent advisors, but is a place where advisors come together as professionals with camaraderie and community. The recognition not only validates the efforts but encourages me to motivate future generations to do the same.”
Krista Hynes
“Advocis membership is a huge part of my professional identity, and aligning myself with an association that is striving for the very best in helping our industry to grow and thrive means so much to me. I’m very proud to be recognized among my peers as the Atlantic Volunteer of the Year, and thank you to my fellow award winners — you are an inspiration!”
Patrick Cziolek
“I was thrilled to receive the recognition by my fellow board members for Volunteer of the Year! Joining the board has provided me with the opportunity to become a part of the bigger picture in our industry, as well
as the chance to grow as a leader by creating the Financial Planning Summit, with an excellent committee, and as president of the chapter.”
Stacy Brooks
“I was humbly surprised by this recognition and award. As a volunteer, I don’t think about getting recognized for my efforts, and it is an honour to be able to give back to this industry and association that is about elevating the knowledge of financial professionals and empowering Canadians through financial literacy. For me, it is a blessing to be in this role.”
Kris Birchard
“As a volunteer who has been focused on national positions for the past three decades, I was humbled to be included among our chapter volunteers to receive this recognition. Chapter volunteers are the backbone of Advocis, and I would like to dedicate my award to the many volunteers in our association who are equally if not more deserving.”
Rick Chase
“I was filled with pride that I could share this award with such a deserving volunteer, Kris. So much energy and effort happen behind the scenes by volunteers working to protect our industry and protect our clients. Kris has spent decades defending ‘advice,’ and I couldn’t be happier to see him recognized.”
Wendy Adams
“Advocis is about creating relationships with other advisors and sharing information that is of value — no matter what company you work for. As a volunteer, I’ve enjoyed seeing and creating the different presentations that our chapter advisors have been able to participate in, and it
continues to amaze me how even many longtime advisors still like to get back to basics through our programming to help them with their businesses.”
Kacie Linn
“I was happy to be recognized as Volunteer of the Year. It’s been very rewarding to work with our Saugeen board members to create value through the educational programs we help to administer. I have learned so much working with other advisors over the years sitting on the board, and value the friendships that have been made and the advice we all share.”
Curtis Kimpton
“I was humbled and proud to receive the Volunteer of the Year award for the Prairie region of Advocis — it is not lost on me how many people have helped and led the way to make this organization far greater each and every day. I am only one of many that work hard in this endeavour, and I thank everyone from my local chapter and all of those across the association for what they do. I consider this award a symbol not of my own contributions, but of how each of us can work together to achieve fantastic results!”
Erin Meisner
“Winning Chapter of the Year is a testament to the hard work, dedication, and unwavering excellence of our entire team. We took a lot of risks, tried many new approaches, listened to our members, and made a lot of adjustments without the certainty that they would pay off. This is why it has been so rewarding to witness how our carefully crafted plans and courage to take calculated risks have resulted in success. It serves as a reminder that great accomplishments often require stepping outside the boundaries of the ordinary!”
Advocis Winnipeg was pleased to welcome members to Group Insurance Day — Issues in Benefits & How to Handle Them on June 8 at the Winnipeg Winter Club. Speakers included Rob Anderson, president and CEO, Bayview Financial Group, and Dave Patriarche, founder, Mainstay Insurance Brokerage and the Canadian Group Insurance Brokers, with facilitation by Dolly Sekhon, sponsorship chair.
Advocis Edmonton once again held its Annual Charity Golf Tournament on June 28, in Support of Wings of Providence (WINGS), raising $5,355 WINGS provides assistance to women and children who are escaping domestic abuse by delivering secure long-term housing and wraparound support services. It creates a safe and welcoming home for more than 100 women and 200 children each year, with programming that provides transformational support and changes lives.
Marking the latest development in the sweeping movement across the country to create better regulations for consumers, on June 16, the government of New Brunswick received royal assent on Bill 29, the Financial Advisors and Financial Planners Title Protection Act. This makes New Brunswick the third province in Canada to pass legislation protecting the Financial Advisor (FA) and Financial Planner (FP) titles, after Ontario and Saskatchewan.
The Act establishes minimum standards to utilize the FA and FP titles, ensuring that only qualified individuals with appropriate credentials are entrusted with the financial well-being of New Brunswickers. The legislation empowers the province’s regulatory body — the Financial and Consumer Services Commission of New Brunswick (FCNB) — to establish a baseline competency profile for FA and FP titles. This would guarantee that competencies behind these titles reflect education and knowledge received from approved credentialling bodies (CBs).
The FCNB will be developing the title protection regulatory framework, using the feedback they received from their initial public consultation in 2021. Advocis is committed to continuing its work with the FCNB and the government of New Brunswick, as well as other provinces that have yet to introduce similar title protection legislation.
Advocis Greater Niagara has been hosting its Eat, Drink, and Be Educated series across Niagara region wineries, providing opportunities for local members to reconnect for both learning and chapter fellowship. The April session at Calamus Winery featured three dynamic presentations with updates on hot industry topics such as wealth transition, the disability tax credit, and decision-making capacity, along with a gourmet lunch and wine tasting. Presenters included Richard Poulin, BMO Global Asset Management, and Christine Brunsden, Benefits2 & Trusted Legacy Consulting (TLC) Corporation, as well as a joint session with Nathan Spaling, Capacity Clinic Ltd., and Dr. Richard Shulman, Capacity Clinic Ltd. A member-exclusive June social at 180 Estate Winery offered a bonus opportunity for Mutual Fund Dealers Association of Canada (MFDA) credits with Paul Taylor, Mackenzie Investments, speaking about the monthly income portfolio.
As the summer ends and autumn begins, I think a familiar habit of preparing for the winter ahead comes into focus for all of us. It might be the back-to-school atmosphere that we either play a role in as parents or remember from our own youth, but I believe this time of year always brings out a spirit of looking ahead in our work and personal lives.
For financial professionals, there is much to look forward to. In Ontario, the end of March 2024 will solidify the first part of title protection legislation in the province as the deadline for holding a recognized credential to use the title of “Financial Advisor” is crossed. The same deadline for holding a recognized credential to use the title of “Financial Planner” comes into effect two years following. Nevertheless, the best time to start getting ready is now. Your clients, colleagues, and profession deserve it.
Beyond Ontario, title protection also continues to evolve as both Saskatchewan and New Brunswick have now passed legislation to implement requirements for both the “Financial Advisor” and “Financial Planner” titles. With these regulations taking root in every part of the country, the writing on the wall is clear: jurisdictions that don’t yet require rigorous professional standards for the dispensation of financial advice will soon witness the clear and undeniable benefits and consumer protections of those that do. With the value shown in action, I believe strongly that the speed of adoption in more provinces across Canada will accelerate quickly. As your association, we are enthusiastic about this and more than prepared to continue offering our support — and thank you as always to our grassroots advocacy volunteers who are leading the way.
Advocis also continues to support title protection and raising the professional bar through education. Our Professional Financial Advisor (PFA) designation program is a recognized credential for the “Financial Advisor”
title in Ontario, and our newest credential — the Life Insurance Professional Certificate (LIPC) — is on the horizon as I write this. Oriented toward professionals who currently hold the Life Licence Qualification Program (LLQP) as their only qualification, the LIPC offers a comprehensive roundingout of LLQP skills that will give these professionals the tools and skills they need to be recognized as a “Financial Advisor” as well. As many professionals in our industry undertake the LLQP as their first credential, we are very excited about the potential of the LIPC to attract many talented individuals to a more comprehensive career in financial advice — one in which the LIPC will equip them to help their clients achieve even greater financial security.
Meanwhile, these efforts continue to intersect with other regulatory efforts underway at Advocis to protect the broader public in both the insurance and investment space. Issues such as the Fair Treatment of Customers (FTC), Total Cost Reporting (TCR), and many others have made 2023 a very busy year for advocacy work, and we are proud to be the voice of your profession — one that understands how evolving this professionalism will be crucial to navigating a regulatory environment that is increasingly complex.
Ultimately, this is at the heart of what it means to build financial advice into a true profession — to understand that it is a task that is never truly done, but that always exists with an attitude of being prepared to face new challenges and opportunities. The past few years have shown us we will have to support our clients and colleagues through unpredictable conditions. They have shown us in equal measure that there is much we can do to raise the professional bar and make ourselves ready for whatever may come.
Together, I know we will accomplish much.
Abundance Canada is a public foundation registered with the Canada Revenue Agency (CRA). Abundance Canada is authorized to receive charitable donations, issue official donation receipts and distribute funds to registered charities in Canada and qualified donees through our donor-advised model. Charity Registration No: 12925-3308-RR0001.
