FP Canada’s overall revenue in the past year rose slightly, while expenses increased by about 6% after the certification body took its technical education in-house in 2023.
Revenue from certification fees was $10.4 million for the year ended March 31, up from $10.3 million the previous year, FP Canada’s 2023–24 financial report said. Certification fees represented 70% of total revenue, the report said, which was in line with last year.
Revenue from education program fees was $2.1 million, compared to $2.0 million a year prior.
Revenue from exam fees dropped to $1.4 million, from $1.6 million the previous year.
Overall, revenue in the past year increased to $15.0 million from $14.7 million, the report said.
Expenses in 2023–24 increased to $16.4 million, up from $15.5 million the previous year, or about 6%. Last year the certification body invested in its technical education program, which it took in-house so it could provide the full education requirements for the designations it oversees. FP Canada also updated the education for its qualified associate financial planner designation.
After accounting for amortization of capital assets and investment income, expenses exceeded revenue by about $531,000; in 2022–23, expenses exceeded revenue by about $956,000.
Cash flow “used in” operations was negative $743,035, the report said, compared to negative $727,035 the previous year. Cash as of March 31 was about $12.4 million, compared to $10.4 million the previous year.
Net assets were $6.8 million, compared to $7.3 million the previous year — a drop of 7.3%.
Available reserves exceed four months of operating expenses, the report said. In 2022–23, available reserves had accounted for five months of operating expenses.
“FP Canada is in a financially sound position and has a solid strategy to continue to diversify revenue and maintain an appropriate level of reserves available for operations,” the report said.
FP Canada faces a legal claim of $1.2 million, filed in April by the Canadian Institute of Financial Planning (CIFP), alleging breach of agreement and depreciation of goodwill, among other things.
The claim arose after the Financial Service Regulatory Authority of Ontario approved the CIFP’s chartered financial planner designation for use of “financial planner” under the province’s title protection framework. FP Canada subsequently said consumers could confuse the designation with the certified financial planner designation it oversees and that is subject to global standards, and an industry coalition called on FSRA to make the CIFP rename its credential or rescind approval.
Regarding the claim, FP Canada said in an email that it “is not subject to any procedural deadlines at this time. If required to do so, FP Canada will vigorously defend itself against all allegations in the claim.”