Advocis CEO commits to paying back contingency fund, communicating about finances

“Working through all of these issues, I’ve been so amazed by the level of professionalism and passion of all of the advisors I’ve dealt with and all the people in the chapters,” Gorman said. Advocis is “here for you, but I have to say, you’ve really been here for Advocis.”

Referring to the association’s financial stabilization, Gorman said, “We’ve turned a corner on it, and I really want to focus on now thriving financially.”

Previously CPA Ontario’s executive vice-president and chief financial officer, Gorman said zero-based budgeting informs the association’s business plan for 2025. “I’m going to drill down on every number and make sure that it’s an effective spend on behalf of the organization and for our members,” she said.

Budgeting for 2025 projected a surplus, she said, which will be used to invest in membership and member services, including continuing education, and replenish the Century Initiative, the association’s contingency fund.

According to the 2023 annual report, Advocis received $2.7 million from the fund, of which $2 million is repayable with interest. The fund balance at year-end 2023 was $3.3 million.

The 2023 financial statements, released in July 2024, noted the association recognized “an estimated cost” to resolve a claim of $100,000, and also that the association was named as a defendant in legal claims totalling $2.6 million. Last year, Advocis resolved a $100,000 invoice dispute with SeeWhy Financial Learning Inc. The association also resolved claims of wrongful dismissal from former CEO Greg Pollock and former chief operating officer Julie Martini.

During the webinar, when Brooks asked about the Pollock case, Gorman said, “It was settled to the mutual satisfaction of the parties,” and that speaking about legal cases would increase the association’s liability exposure.

On Friday, a cybersecurity firm filed a claim in court, suing Advocis and Advocis Broker Services Inc. for more than half a million dollars. The claim, which was not discussed during the conversation, alleges breach of contract and breach of their duties to act honestly and in good faith.

Focus on chapters, fees

Gorman said she wants the association to have “more robust” communication with the chapters, including financial reporting, “so chapters can make informed decisions.” Advocis invested in a new finance system last year, she added, which should facilitate “more timely” financial reporting.

This year, Advocis will assess its membership fees versus those of other associations. “We will look at [fees] relative to the value we are providing members,” Gorman said.

As far as the portion of fees that goes to national office, some of that amount covers “legacy costs,” she said, such as those for leasing office space. As those costs “run off our books,” and as Advocis rebuilds, “we want our money to go back to the membership [and] to replenish the [Century Initiative] fund.”

Financial resources this year will also go toward advocacy, whether that means permanent or contract staff, Gorman said: “It’s dependent on what the [advocacy] agenda looks like for the year, and we’re still putting that together.”

Growing membership

Gorman said the association was focused on increasing membership and CLU designation holders as more advisors approach retirement age. To do that, a multi-pronged approach is required, she said, including recruitment at universities and high schools, and creating an “emerging leaders” advisory committee for input on what resources younger advisors want from Advocis.

An online forum will also be implemented this year so that members can discuss issues such as succession and also access continuing education opportunities. In addition, it would also serve as a resource for younger advisors to ask questions or receive mentorship.

Gorman also highlighted Advocis’ relationships with regulators and other associations. “From a collaboration standpoint, we’re in a really good position,” she said, referencing conversations with the Conference for Advanced Life Underwriting (CALU), among others.

CALU is currently reviewing its requirement that CALU members also be members of Advocis.

“My hopes are that when this goes to a vote, their members still want to be part of Advocis because of the value … we bring to bear,” Gorman said. She also noted that many CALU members have the CLU designation, “so there’s a lot of crossover and collaboration that is open to us.”

Regardless of the outcome of CALU’s review, “it’s important for both of our organizations to collaborate” on continuing education, communications and events, she said.

Promoting the CLU designation

In addition to attracting younger advisors and students to the CLU program, Gorman’s plan to promote the designation includes helping Canadians understand its value and demonstrating CLU thought leadership.

“It’s time now to get back to business on this and make sure the public really understands the premium-ness of our designations and what we have to offer Canadians,” Gorman said. “I believe that will definitely get more traction around the CLU.”

Gorman said discussions with employers about the CLU have begun under the purview of the newly appointed director of business and professional development.

When asked about potentially changing the name of the designation to better reflect program content, Gorman said such a decision would require a “full, thoughtful process” as well as members’ input. And she again referenced the potential for greater exposure and promotion of the CLU through thought leadership.

When an audience member commented that newer, younger advisors prefer the certified financial planner designation overseen by FP Canada, Gorman said professionals often pursue more than one designation. As the CLU is promoted, industry professionals will better understand that the designation arms them “with further information to be the best advisors they can be in the marketplace.”