Annual Report 2015 MOBILIZING TORONTO REGION’S FINANCIAL SECTOR FOR GLOBAL ADVANTAGE CHAIR, FINANCIAL SERVICES LEADERSHIP COUNCIL “The Council meeting highlights an important strength for Canada’s financial sector – the cooperation between all the participants, both government and industry, on issues of mutual concern. Through the Council, we leverage the Last June, I again had the privilege of chairing the expertise and resources sixth annual meeting of TFSA’s Financial Services Leadership Council. As expected, when you gather that come from that 15 of our leading financial company CEOs, the Ontario Premier, the federal and provincial finance public and private ministers and the Mayor of Toronto, we covered partnership to provide a wide range of issues critical to the industry’s continued growth. broad strategic oversight Participants observed that the growing strength and advice to TFSA’s of fintech in the region may help Toronto build a global niche, particularly as both the University management team and of Toronto and the University of Waterloo have developed global reputations in various areas of to government officials. fintech. TFSA updated the Council on its fintech strategy, designed to strengthen the relationship It is a relationship that between the financial industry and the innovation community so the region can more effectively is at the heart of TFSA’s meet the financial industry’s needs. mandate and one that A top of mind issue for all the CEOs is cybersecurity. Protecting their critical technology infrastructure acts as a powerful and consumers’ private information from increasingly sophisticated attacks is a major symbol of what we can preoccupation for their management teams and a source of continued significant investment. The accomplish together.” federal finance minister also noted that Ottawa wants to ensure that Canada’s telecom and financial technology systems are well-protected. CEOs encouraged the government to act with even greater urgency. 1 FINANCIAL SERVICES LEADERSHIP COUNCIL Toronto Financial Services Alliance (TFSA) is guided by a Leadership Council comprised of senior political leaders and the CEOs of 15 of the leading Toronto financial services While government leaders expressed the need for companies. The council is chaired by the private sector investment in infrastructure, the Honourable Michael Wilson, Chairman of CEOs indicated their willingness to do so, but also Barclays Capital Canada. underlined the significant policy and other barriers that are still undermining these efforts. Regulatory COUNCIL CHAIR Janet Ecker issues, a lack of suitable projects, continued President & CEO political uncertainty about engaging in such Hon. Michael Wilson TFSA Chairman projects were some of the issues raised. Transit Barclays Capital Canada Jeff Carney remains the major provincial focus while the City President & CEO wanted to explore partnerships to support more Mackenzie Financial affordable housing. COUNCIL MEMBERS Corporation Concerns were expressed about the unintended Bharat Masrani His Worship John Tory Mayor consequences of Ontario’s mandatory pension plan President & CEO City of Toronto on consumers’ ability to save for other priorities, on TD Bank Group Ontario’s competitiveness as an investment location Hon. Bill Morneau Hon. Kathleen Wynne and on current providers of retirement income Minister of Finance Premier of Ontario Ontario services and products. Canada Blake Goldring Lou Eccleston Finally, the group discussed the ongoing work Chairman & CEO CEO between Toronto and the downtown financial AGF Management Ltd. TMX Group district to develop an emergency preparedness Mark Wiseman plan for the city centre. Brian Porter President & CEO President & CEO CPP Investment Board The Council meeting highlights an important Scotiabank strength for Canada’s financial sector – the Charles Brindamour Michael Latimer cooperation between all the participants, both CEO President & CEO OMERS government and industry, on issues of mutual Intact Financial concern. Through the Council, we leverage the Corporation Ron Mock expertise and resources that come from that public Hon. Charles Sousa President & CEO and private partnership to provide broad strategic Minister of Finance OTPP oversight and advice to TFSA’s management team Government of Ontario Victor Dodig and to government officials. It is a relationship David McKay President & CEO that is at the heart of TFSA’s mandate and one President & CEO CIBC that acts as a powerful symbol of what we can RBC William Downe accomplish together. Dean Connor President & CEO President & CEO BMO Financial Group I look forward to continuing our joint efforts to build Sun Life Financial Toronto’s profile as a growing international financial centre in 2016. Donald Guloien President & CEO The Honourable Michael Wilson is Chairman, Manulife Financial Barclays Capital Canada, Inc., former Canadian Greg Somerville Ambassador to the United States of America and President & CEO a former Canadian Finance Minister. Aviva Canada CHAIR, TFSA BOARD OF DIRECTORS “That is where TFSA comes in. We are here to highlight what the industry needs to grow, what will enhance our global reputation as an international financial centre and what will strengthen our competitiveness. As the Chair of TFSA’s Board of Directors, I am often No other organization asked to describe what the organization does and how it contributes to Toronto’s now well-established provides this unique profile as a top ten international financial centre. From my vantage point on the Board, I have had a window on the industry ring-side seat to watch and admire TFSA’s growing in this region, or brings role and the value-add its team adds to the financial services sector. Put simply, TFSA is the catalyst together all of the that draws together government, the industry and academia to identify where collaborative efforts can critical partners to generate mutual benefits. make it happen.” Whether it is helping drive business attraction efforts to bring more financial investors and fintech companies to the region, identifying policy or financial services sector, but also for 43% of the regulatory issues impacting the industry’s ability sector’s headquarters employment, as well. to grow, seeking to meet the sector’s talent needs in the region, bringing government to the table to As great as that success may be, TFSA’s message discuss issues of concern to the industry or simply is that we can’t take it for granted. Given the getting the message out about the industry’s many challenges faced by the industry – from critical contributions to our regional and national fintech disruption, regulatory change or just economic success, TFSA provides a strong voice for global economic challenges – that success is our financial cluster. not guaranteed. We need to make sure that our business environment is still supportive, that our Governments are often preoccupied with industries tax policies are still competitive, our infrastructure in trouble and this industry is anything but. It is top notch and our talent base unsurpassed. now the largest, direct private sector contributor to the region’s GDP at 13.3% and continues to out- And that is where TFSA comes in. We are here to perform other sectors in contributing to Canada’s highlight what the industry needs to grow, what will employment, economic growth, international trade enhance our global reputation as an international and investment performance. Toronto accounts not financial centre and what will strengthen our only for more than 30% of employment in Canada’s competitiveness. No other organization provides 3 BOARD OF DIRECTORS Adrian Basaraba Kevan Cowan (Chair) Senior VP, Finance AGF Management Ltd. Kirby Connor Managing Director, Fixed Allan Warren Income and Currency SVP, Fund Services OMERS Mackenzie Financial this unique window on the industry in this region, Corporation Louis Durocher or brings together all of the critical partners to Chief Risk Officer make it happen. Angelo Pugliese Aviva Canada Inc. VP, Global Human Resources Melissa Kennedy An important support to that role is the Executive VP, Chief contribution made by our Board of Directors. State Street Trust Company Canada Legal Officer TFSA’s Board is large by many board standards, Sun Life Financial but it needs to be, to bring together senior Ann Louise Vehovec Head of Enterprise Michel Leduc executives who can represent the diversity of Senior Managing the industry’s many segments, including its Strategy RBC Director and Global business support services and our colleges and Head of Public Affairs universities, who contribute so much to our talent Benjamin Tal and Communication base in the region. Deputy Chief Economist CPP Investment Board CIBC Mike Williams The TFSA Board members provide invaluable Cindy Tripp GM Economic advice and guidance, based on their broad range Managing Director, Development & Culture of experience and expertise. Their participation Co-Head Institutional City of Toronto ensures that TFSA’s activities and strategies are Trading Monika Federau fully aligned with the industry’s needs and that GMP Securities SVP & Chief we are keenly sensitive to where we can add the Douglas J. Porter Strategy Officer most value. Chief Economist & Intact Financial Managing Director Corporation I would like to thank all of the Directors on the BMO Financial Group TFSA Board, not only for their hard work and Neil Bisset Frank Swedlove SVP and Chief input, but also for their support of me, in my role President