Advocis launches Advocis Protective Association

Non-profit entity created to manage industry leading E&O plan

Thursday, May 27, 2004, Calgary – Advocis, Canada’s largest professional membership association of financial advisors, today announced the launch of the new Advocis Protective Association (APA) for the purpose of developing and managing an industry-leading, member-only errors and omissions insurance (E&O) plan.

“A strong marketplace demand has driven Advocis to work on this innovative errors and omissions plan that will be more reflective of the needs of its plan holders,” noted Steve Howard, Advocis president and CEO. “This initiative is predicated on the principal belief that professionals should have a role in shaping and managing a product that is so vitally important to their practice,” he concluded.

Headed by John Martin, Advocis established an E&O committee of members who are dedicated to the development of a competitive plan designed to meet the needs of advisors. Committee members include long-standing Advocis members and established advisors Lawrence Geller, Gary MacLeod, and Floyd Murphy.

“It’s a case of big being better, particularly where a plan of this nature is concerned,” commented Mr. Martin. In addition to creating efficiencies, our objectives are to deliver plan stability in contributing to the claims process, to proactively educate members, and to advance the Advocis best practices approach to protect advisors against claims. Everyone comes out a winner.”

As a separate entity, with its own board of directors and operating committees, the APA will protect Advocis’ not-for-profit status.

“What you have is effectively a plan operated by its members,” remarked Mr. Martin.

“We are extremely pleased with our current providers and are working closely with Aon, our broker, to develop and present an enduring plan that fits the needs of practitioners to our insurers, The Employers Reinsurance Corporation and Lloyds of London,” confirmed Mr. Martin.

Paul MacDonald of the Aon Professional Services Group reinforced this by adding, “Aon is particularly pleased to continue its successful partnership with Advocis. We look forward to working with APA in establishing an industry leading, group-funded deductible E&O plan that will serve the best interests of Advocis members.”

APA is currently working with Advocis members, corporate partners, and interested financial institutions to ensure compatibility of member needs with the right product, administration, and service levels, with a view to unveiling full plan details early in the fourth quarter of 2004.

About Advocis

Advocis, the largest professional membership association of financial advisors in Canada, represents more than 16,000 members who serve the financial best interests of more than 12 million Canadians. The Association’ s mission is to prepare, promote, and protect advisors and their clients. Advocis advisors adhere to a strict Code of Professional Conduct, meet ongoing continuing education requirements, and are committed to putting their clients’ interests first. The Association’s Web site is