Education Profile Report

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Education

Profile

Report

Toronto Financial

Services Sector

June 30, 2012

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The Uses and Intended Audience for this Report

This report profiling Toronto Region Financial Services Sector Education is based on statistical data that currently exists in the public domain. Pulled together from a variety of different sources, each produced at different points over the past 3 - 6 years, this document offers a single point of reference for human capital planners in financial services organizations in the Toronto Region. This overview can also serve as an initial source of information for Canadian and foreign financial services organizations interested in establishing a presence or expanding existing operations in the Toronto Region.

This Education Profile and the level and scope of its content will be expanded and updated through annual Workforce Surveys specific to the Toronto Region Financial Services Sector.

The Toronto Region: Where Business and Education Meet

The Toronto region boasts a skilled, highly-educated and diverse workforce. A critical mass of top universities and colleges feed the demand for financial services talent, and the region’s educational institutions attract the best and brightest students, researchers, academics and local and global luminaries. Almost 80% of those employed in the financial services sector have a post-secondary education, versus 65% in all sectors.

The Toronto Region

In this report, the term ‘Toronto region’ refers to the Greater Toronto Area (GTA) which includes the City of Toronto and the surrounding regions of Durham, York, Peel, Halton, Hamilton and Kitchener / Waterloo.

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The Financial Services Sector in the Toronto Region

The financial services sector is an economic engine for the Toronto region. More than 220,000 people work in the sector in Toronto, the largest concentration of financial services employment in Canada. Toronto is home to 12 domestic banks, three of the world’s top 50 pension funds, 60% of life insurance companies in Ontario, 129 securities firms, 45 foreign bank subsidiaries, and North America’s third-largest stock exchange after New York and Chicago.

Toronto is an exciting Education Hub

The Toronto region encompasses a vibrant education cluster of top universities, colleges and educational associations. Some 360,000 full-time students are enrolled in the Toronto region’s universities, colleges and other tertiary level educational institutions. The region produces approximately 100,000 graduates every year.

Three of Ontario’s 20 public universities and 5 of the 24 community colleges are located in Toronto’s census metropolitan area:

Universities

 Ryerson University  University of Toronto

 York University

Colleges

 Centennial College of Applied Arts and Technology  George Brown College of Applied Arts and Technology

 Humber College Institute of Technology and Advanced Learning  Seneca College of Applied Arts and Technology

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The growing university presence in the region serves to broaden the inventory of graduate programs available to the financial services sector. Local business schools are internationally recognized. The World Economic Forum ranks Canada as 4th in the world on the quality of management schools1. The Rotman School of Management at the University of Toronto, Schulich School of Business at York University have been ranked among the best in the world. Other top schools include the Ivey School of Business at the University of Western Ontario (London, Ontario), Queen’s School of Business, Queen’s University (Kingston, Ontario), Wilfred Laurier University (Waterloo, Ontario) and the University of Waterloo, all of which are in close proximity to the Toronto region.

Source: Ontario Ministry of Training, Colleges and Universities – “Total Degrees Awarded at Ontario Universities and Federated/Affiliated Institutions by Qualification and Title of Degree - Calendar Year 2010”

1_{World Economic Forum – “Global Competitiveness Report 2011-2012”}

Table 1

Summary of Undergraduate and Graduate degrees Awarded – 2010

Business & Commerce Computer Science

Bach. Masters Total Bach. Masters Total

Carleton University ₃₃₇ ₁₁₃ ₄₅₀ ₇₃ ₂₆ ₉₉

McMaster University ₄₆₂ ₁₉₂ ₆₅₄ ₁₀ ₂₁ ₃₁

Queen’s University ₂₉₆ ₅₅₅ ₈₅₁ ₂₆ ₂₇ ₅₃

Ryerson University ₁₃₃₈ ₆₂ ₁₄₀₀ ₆₁ ₁₈ ₇₉

University of Guelph ₆₂₉ ₇₅ ₇₀₄ ₆₉ ₂₂ ₉₁

University of Ontario Institute of Technology

184 0 184 75 14 89

University of Ottawa ₆₂₁ ₁₃₆ ₇₅₇ ₃₃ ₄₄ ₇₇

University of Toronto ₁₂₀₂ ₆₄₁ ₁₈₄₃ ₁₃₂ ₈₅ ₂₁₇

University of Waterloo ₂₃₁ ₂₈₀ ₅₁₁ ₂₁₁ ₈₀ ₂₉₁

University of Western Ontario ₁₀₀₅ ₃₂₀ ₁₃₂₅ ₄₂ ₃₉ ₈₁

Wilfred Laurier University ₆₂₄ ₂₅₄ ₈₇₈ ₂₅ ₀ ₂₅

York University ₁₄₂₄ ₆₃₄ ₂₀₅₈ ₁₈₈ ₂₅ ₂₁₃

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Partnerships and Collaborations

Post-secondary schools, as institutions of higher learning, research and development and innovation, are important drivers of local, regional and national economic development. This is where the talent pool is nurtured.

The colleges and universities in the Toronto region work in partnership with companies in the financial services industry for student recruitment, career placement, corporate training, sponsorship and research. This is done on both formally and informally. On a formal level, Program Advisory Committees are mandated by the provincial government as a means of ensuring program quality and relevance. Committee members are leaders in their fields, and are able to draw on their significant depth and range of expertise and experience. Not only do they provide guidance on what new programs might be needed, they also oversee the development of the programs as well as their quality.

Universities and colleges also collaborate extensively with one another on program offerings and research. These are designed to leverage the expertise of faculty across a range of institutions, and result in a level of excellence in research and innovation that is unparalleled in other jurisdictions.

The volume and depth of these partnerships enhances Toronto’s education and business hub synergy.

Success measures

The Toronto region’s post-secondary institutions score highly on a range of measures. This report will highlight two of them:

 Performance Indicators  School Rankings

Performance Indicators

University Programs

Ontario’s universities are measured according to three key performance indicators (KPIs) by the provincial government:

 graduation rates  employment rates

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The table below summarizes the first two KPIs: graduation rates and employment rates for Business & Commerce programs.

Table 2

Business & Commerce Programs

Graduate Employment Rate (%) Degree Completion

Graduation Rate (%) Six months

after graduation

Two years after graduation

McMaster University 96.2 (2006 Grads) 98.7 (2006 Grads) 88.4 (Fall 2000)

Ryerson University 91.9 (2006 Grads) 94.6 (2006 Grads) 75.4 (Fall 2000)

Queen’s University 100.0 (2006 Grads) 100.0 (2006 Grads) 96.3 (Fall 2000)

University of Guelph 97.8 (2006 Grads) 96.7 (2006 Grads) 78.6 (Fall 2000)

University of Ontario

Institute of Technology n/a n/a n/a

University of Toronto 95.8 (2005 Grads) 97.9 (2005 Grads) 80.0 (Fall 1998)

University of Waterloo 100.0 (2006 Grads) 100.0 (2006 (Grads) 92.3 (Fall 2000)

University of Western

Ontario 97.1 (2006 Grads) 97.2 (2006 Grads) 86.1 (Fall 2000)

Wilfred Laurier University 97.6 (2006 Grads) 98.4 (2006 Grads) n/a

York University 94.7 (2006 Grads) 95.3 (2006 Grads) 77.3 (Fall 2000)

Provincial Averages - Business & Commerce Program Cluster (all Ontario universities)

95.4 (2006 Grads) 96.5 (2006 Grads) 80.7 (Fall 2000)

Sources: (a) Graduate employment rate – “Employment Rates: Business & Commerce Programs by Institution, 1997-2006” http://www.tcu.gov.on.ca/pepg/programs/osaprates/ ; (b) Degree completion graduation rate – “Degree

Completion Rates: Business & Commerce Programs by Institution” http://www.tcu.gov.on.ca/pepg/programs/osaprates/

The university graduation rates are calculated by the Ontario Ministry of Training, Colleges and Universities (MTCU). For each year, MTCU looks at all full-time, year one undergraduate students enrolled in the fall of a particular year who were seeking either a bachelors or first professional degree and then looks at whether those students graduated within seven years of their enrolment.

The employment rates are generated through a survey conducted by Ontario universities in conjunction with the Ontario Universities Application Centre. In the survey, graduates of undergraduate degree programs are asked about their employment situation six months and two years after graduation.

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College Programs

There are several program clusters within the Business Division of the colleges’ educational offerings which help to prepare students for careers in financial services. These clusters are primarily: Accounting/Finance, Business Computer, Business Legal and Business Management.

While this next section deals primarily with the Accounting/Finance cluster, which offers the greatest number of education programs directly related to occupations in financial services, graduates of the other three program clusters also report financial services organizations as key employers.

Average Salaries and Graduate Employment Rates

Similar to the key performance indicators for the university business and commerce program cluster, the following summarizes the results for the financial services-related college programs2.

Table 4

Ontario 2009- 2010 College Graduate Outcomes – 6 Months after Graduation

Program Clusters Total

Grads % Employed % Employed Full-time Related Jobs Average Annual Salary, Full-time Related Jobs % Satisfaction Rating (Satisfied & Very Satisfied)

Graduate Employer Business Division 20,607 80 46 $33,095 75 93 Accounting/Finance 3,454 75 46 $33,775 80 94 Business Computer 914 79 54 $39,174 74 90 Business Legal 1,194 79 47 $34,058 74 93 Business Management 4,103 77 41 $34,046 73 94 All Divisions 72,066 83 44 $35,505 79 93

Source: “Employment Profile – A summary of the employment experience of 2009-2010 college graduates six months after graduation”, MTCU publication, 2011 www.ontario.ca/psepartners

Looking at the top five industries of employment for the graduates of the Accounting/Finance program, Credit Intermediation was the second largest industry.

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The top five industries of employment for 2009-2010 graduates of the Accounting/Finance programs were:

Professional, Scientific and Technical Services 15%

Credit Intermediation and Related Activities 11%

Insurance Carriers and Related Activities 7%

Food Services and Drinking Places 6%

Administrative and Support Services 5%

The average salary for full-time employed Ontario college graduates was the highest for the Accounting and Information Technology program at $45,648 for 2009-2010 graduates. The next highest average salary was reported by 2009-2010 graduates of the Bachelor of Applied Business (Financial Services Management) program at $39,697 followed by Financial Services Compliance Administration at $39,218.These salaries were substantially above the average of $32,143 for all programs in the cluster.

School Rankings

Universities and their business schools regularly receive rankings from a variety of organizations. These rankings can be very useful to students when choosing a business school or MBA program. The Toronto region universities are highly rated placing among the top 100 universities in the world in a number of global surveys.

According to the Academic Ranking of World Universities, the University of Toronto ranked #1 in Canada and #26 in the world in 2011. McMaster ranked #4 nationally and #88 in the world.

BusinessWeek’s 2010 Business School Ranking for Non-US Schools listed 4 business schools delivering programs in the Toronto region in the Top 10. BusinessWeek ranked Queen’s University at #2, University of Western Ontario (Ivey) at #6, University of Toronto (Rotman) at #8 and York University (Schulich) at #9.

In the 2011 Financial Times Executive MBA rankings, York University (Schulich) led the Canadian business schools and placed #11 in the world, followed by the University of Western Ontario (Ivey) and the University of Toronto (Rotman) at #28 and University of Western Ontario (Ivey) at #36.

% of Survey Respondents Citing Industry

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Region’s universities regularly rank among the top 100 schools in the world in the some of the most popular school ranking surveys.

Survey Ranking in

Canada World

Academic Ranking of World Universities - 20113

University of Toronto McMaster University 1 4 26 89 BusinessWeek Business School Rankings – Top Non-U.S. Schools

Full-Time MBA 2010

Queen's School of Business University of Western Ontario (Ivey)

University of Toronto (Rotman) York University (Schulich)

-- Non-U.S. 2 6 8 9 BusinessWeek Executive MBA – Top 25 Global – 2009

Queen's School of Business -- 29

The Economist MBA Ranking – 2011

York University (Schulich) -- ₉

Financial Times Global MBA Ranking – 2011

University of Toronto (Rotman) University of Western Ontario (Ivey) 4

York University (Schulich)

-- 46

46 49 Financial Times Executive MBA – 2011

Kellogg / York University (Schulich) University of Toronto (Rotman) University of Western Ontario (Ivey) Queen's School of Business

--

11 28 36 84 U.S.News & World Report's World's Best Universities: Canadian

Universities5 – 2010

University of Toronto Queen’s University University of Waterloo McMaster University University of Western Ontario York University 3 5 7 8 9 16 3

Published by the Center for World-Class Universities, Shanghai Jiao Tong University, China

4_{Tied with University of Toronto: Rotman} 5_{Based on the QS World University Rankings}

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Professional Associations

The Toronto region is home to a number of the world’s leading professional organizations, all of which expand and enrich the inventory of financial programs available to executives and skilled professionals. Professional associations such as the Certified General Accountants (CGA), Certified Management Accountants (CMA), Canadian Institute of Chartered Accountants (CA), Advocis (The Financial Advisors Association of Canada), Canadian Institute of Financial Planners and the Investment Funds Institute of Canada (IFIC) strengthen the region’s talent pool.

IFIC has its own web-based distance education program which offers a variety of courses throughout the year. IFIC, through its wholly owned subsidiary, the IFSE Institute, delivers more than 20,000 courses annually.

The Toronto CFA (Chartered Financial Analyst) Society is the 2nd largest in the world with well over 7,000 members. The Society provides its members with a host of educational and professional development programs throughout the year.

Table 5 provides an overview of the pool of qualified professionals practicing in the Toronto Financial Services sector. Table 6 lists the variety of designations/certificates available in support of this wide array of expertise.

Table 5

Sizable Pool of Qualified Professionals 2008 (unless otherwise noted)

Toronto Region Toronto as a % of Ontario

Chartered Accountant (CA) 19,146 68

Certified General Accountant (CGA) 2009 12,000 60

Chartered Financial Analyst (CFA) 7,000 96

Certified Management Accountant (CMA) 2009 7,759 50

Certified Financial Planner (CFP) (2007) 7,609 84

Chartered Alternative Investment Analyst (CAIA) 98 96

Fellow of the Canadian Institute of Actuaries (FCIA) n/a 1,409

FCIAs in Ontario Lawyers practicing financial services-related law6 7,444 which represents 63% of all Ontario lawyers who

report practicing financial services related law; and, 19% of total Ontario lawyers

ICT Workforce* 2009 159,760 51%

*Selected NAIC codes

6_{Financial-services related practice areas included in count: Bankruptcy, Securities, Tax Law and Will/Estates Law; Source:}

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Financial Services Industry Designations/Certificates

Designation Provider/Sponsor

Accounting

Certified General Account (CGA) CGA

Certified Management Accountant (CMA) CMA

Certified Professional Bookkeeper IPBC

Chartered Accountant (CA) CICA

Investigative and Forensic Accounting (CA-IFA) CICA

Information Technology (CA-IT) CICA

Business Valuation (CA-CBV) CICA

Internal Auditing (CA-CIA) CICA

Information Systems Auditing (CA-CSIA) CICA

Insolvency and Restructuring (CA-CIRP) CICA

Banking/other credit intermediation

Accredited Consumer & Residential Mortgage Lender CUSource

Accredited Commercial Loan Administrator CUSource

Accredited Canadian Credit Union Director CUSource

Accredited Member Service Representative CUSource

Accredited Mortgage Professional (AMP) CAAMP

Associate of the Credit Union Institute of Canada (ACUIC) CUSource

Associate, Institute of Canadian Bankers (AICB) CSI Global

Certified Credit Professional (CCP) CIA

Certified Deposit Specialist (CDS) RDBA

Certified Professional Mortgage Agent (CPMA) IMBA

Certified Professional Mortgage Broker (CPMB) IMBA

Credit Specialist CIA

Fellow, Institute of Canadian Bankers (FCIB) CSI

Fellow of the Credit Union Institute of Canada (FCUIC) CUSource

Member Trust Institute (MTI) CSI

MTI - Personal Trust- Estate and Trust Management CSI

MTI – Mortgage Program CSI

MTI – Taxation Program CSI

Registered Deposit Agent (RDA) RDBA

Registered Deposit Broker (RDB) RDBA

Specialist, Trust Institute (STI) CSI

STI – Personal Trust-Business Development CSI

STI - Personal Trust- Estate and Trust Management CSI

STI – Mortgage Program CSI

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Financial Services Industry Designations/Certificates

Designation Provider/Sponsor

Financial Planning

Certificate in Financial Services Advice (CFS) CSI

Certificate in Retirement Strategy (CRS) CSI

Certified Financial Planner (CFP) Advocis, FPSC

Chartered Professional Strategic Wealth (Ch.P) CSI

Financial Management Advisor (FMA) CSI

Personal Financial Planner (PFP) CSI

Insurance

Canadian Accredited Insurance Broker (CAIB) IBAC

Canadian Certified Insurance Brokers (CCIB) IBAC

Canadian Loss Adjuster (CLA) CIAA

Canadian Professional Insurance Broker (CPIB) IBAC

Chartered Insurance Professional (CIP) II

Chartered Life Underwriter (CLU) Advocis

Fellow, Chartered Insurance Professional ((FCIP) II

Fellow of the Canadian Independent Adjusters' Association (FCIAA)

Life Licensing Qualifying Program (LLQP) Various

Registered Health Underwriter (RLU) Advocis

Investment Management

Canadian Investment Manager (CIM) CSI

Certificate in Investment Performance Management (CIPM) CFA Institute

Chartered Alternative Investment Analyst (CAIA) CAIA Association

Chartered Financial Analyst (CFA) CFA Institute

Derivatives Market Specialist (DMS) CSI

Fellow of CSI (FCSI) CSI

Risk Management

Canadian Risk Management (CRM) GRMI & RIMS

Masters Certificate in Enterprise Risk Management Schulich

Certificate in Enterprise Risk Management UofT

Chartered Enterprise Risk Analyst (CERA) CIA & Partners

Other

Accredited Mortgage Professional (AMP) CAAMP

ACI Diploma FMAC/ACI

ACI Dealing Certificate FMAC/ACI

ACI Settlements Certificate FMAC/ACI

Canadian Business Valuator CICBV

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13 Glossary:

Advocis Advocis

CAIA Association CAIA Association

CFA Institute CFA Institute

CIA Credit Institute of Canada

CIAA Canadian Independent Adjusters’ Association

CICBV Canadian Institute of Chartered Business Valuators

CICA Chartered Accountants Canada

CGA Certified General Accounts Association of Canada

CMA Certified Management Accounts

CSI CSI Global

CUSource CUSource Knowledge Network

FMAC & ACI Financial Markets Association of Canada, affiliated with Association Cambiste Internationale)

FPSC Financial Planners Standards Council

GRMI & RIMS Global Risk Management Institute and Risk Institute

IBAC Insurance Brokers Assoc. of Canada

II Insurance Institute

IMBA Independent Mortgage Brokers Association of Ontario

IPBC Institute of Professional Bookkeepers of Canada

OSB & CAIRP Office of the Superintendent of Bankruptcy & the Canadian Association of Insolvency and Restructuring Professionals

RDBA Registered Deposit Brokers Association

Schulich Schulich School of Business, York University

UofT University of Toronto

Various Advocis, CSI, ILS Learning Corporation, Insurance Institute of Canada, Ment-r.com/Learning Library, Mohawk College of Applied Arts and Technology, Oliver Publishing, Peel/IFIC, Seneca College/CON*NECT, The Business Career College and the following insurance companies: Sunlife Assurance Company of Canada , Combined Insurance Company of America, London Life Insurance Company and Primerica Life Insurance Company

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Customized Executive Education

Toronto region companies are increasingly working with educational institutions to provide customized programs delivered on-site. Customized training programs are tailor-made to the specific company’s needs and are aligned with a company’s strategic goals to help achieve bottom-line results.

Typically, the company works closely with the educational provider to align the course content, program duration and venue to the strategic needs of the organizations. As well, some companies in the region have established a stand-alone “corporate university”, sometimes inviting outside instructors and professors to teach at the company campus. Whatever your company’s needs, a program can be designed and delivered by one of the Toronto’s outstanding educational institutions.

International Programs: Training the World

The Toronto region offers executives an excellent education at an excellent price. Business executives from International companies come to Canada for a variety of training programs. Many of the region’s community colleges and universities have inbound delegations from around the world who send their top executives to the Toronto region for training.

The Toronto Centre has trained nearly 3,000 financial regulators from 170 countries around the world in leadership and management skills. The Toronto Centre is sponsored by organizations such as the World Bank, International Monetary Fund, Canadian International Development Agency (CIDA) and the Schulich School of Business at York University to provide training programs for senior officials from financial authorities around the world.

The Toronto region is helping to train and develop the future global leaders of tomorrow. It is a magnet for attracting top students, senior government officials and corporate executives from around the globe. The student population at educational institutions is a kaleidoscope of local and international students that give a rich diversity to the region.

The fact that some of the world’s best and brightest students choose Toronto over other cities, such as Boston, New York, London and Hong Kong, speaks to the quality of the education and expertise that resides in the Toronto region. International education also extends to sending Canadian professors and instructors overseas. Many Toronto universities and colleges send their instructors overseas to deliver short-term training programs to corporate executives. As well, some of the top business schools have a satellite location or strategic partnership overseas (Hong Kong, Dubai) to deliver executive programs year-round in that corner of the globe.

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“Canada benefits from top-notch transport and telephony infrastructure; highly efficient markets, particularly labor and financial markets; and well-functioning and transparent institutions. In addition, the educational system gets excellent marks for quality, which has prepared the country’s workforce to adopt the latest technologies for productivity enhancements.”

From the World Economic Forum’s Global Competitiveness Report 2008-2009

Future Updates

The Education Profile is a snapshot in time and will be updated through periodic workforce surveys.

Toronto Financial Services Alliance (TFSA)

The Toronto Financial Services Alliance (TFSA) is a public-private partnership created in 2001 to enhance and promote the competitiveness of the Toronto region as a premier global financial services centre. The TFSA works closely with industry, affiliate services and government. Its membership encompasses core financial services companies — banks, brokerages, asset management firms, insurance companies—as well as partner sectors—accounting, law, education and executive search.

The Centre of Excellence in Financial Services Education (CoE)

The mission of the Centre of Excellence in Financial Services Education (CoE) is to be the catalyst that strengthens and expands Toronto’s talent pool to elevate the region’s global stature as a financial services capital. The CoE fosters cooperation between the financial services industry and the educational institutions that provide financial services training to ensure that their programs can meet the sector’s growing needs. The CoE was created and funded by the Ontario government with the financial support of the City of Toronto. The CoE is operated by the TFSA.

For more information and detailed statistics on the Financial Services Sector talent pool, please visit the TFSA-CoE’s website at www.tfsa.ca

Contact Information:

Toronto Financial Services Alliance – Centre of Excellence 55 University Avenue, Suite 1800