New opportunities for global innovators - TFSA · The world works here. Financial Services in Ontario New opportunities for global innovators

The world works here.

Financial Services in

OntarioNew opportunities for global innovators

Financial Services in Ontario

More global leaders choosing Ontario for expansionGlobal financial leaders have recognized the competitive

advantages they can gain internationally by opening or

expanding their asset management, risk analytics or

high-skill technical operations in Ontario, Canada.

That’s why, in 2010, Canada’s finance and insurance

sector – which is largely centred in Ontario – attracted

$5.4 billion in foreign direct investment, an increase of

7% over the previous year.

China Investment Corporation opened its first foreign

office not in London, New York or Chicago, but in

Toronto, Ontario. Apex Fund Services, Citco, KPMG,

Merrill Lynch and many other leading firms have

invested here.

Why Ontario? We have the people, the technologies

and the business environment that can help innovative

companies succeed in global markets.

Table of Contents Financial services for a changing world ............................................... 2

An exceptional workforce for innovative companies ....................... 7

High performance ICT services .......................................................... 10

A cost-efficient business environment ............................................. 11

Easy access to key markets and customers ....................................... 14

And after work? An exceptional quality of life .............................. 15

Note: Every effort has been made to ensure the accuracy of the information in this publication at the time of writing; however, the programs referred to and the data cited are subject to change.All fi gures are in Canadian dollars unless otherwise noted.

Financial Services in Ontario1

Rapid consolidation, regulatory reform and unprecedented technology-driven change are re-shaping the global fi nancial services industry.

For innovative companies, this is creating tremendous growth opportunities.

If you’re planning to expand your fi nancial services company, here’s what you should know about Ontario.

We offer:• a broad, deep talent pool with proven expertise in

fi nancial services

• high performance ICT services and a cost effi cient business environment

• easy access to key markets and customers.

Check out our numbers. They add up to a big win for both you and your shareholders.

Join us.

FAST FACTThe Economist Intelligence Unit

(EIU) forecasts that, through

to 2014, Canada will be one

of the best countries in the

world in which to do business.

Why? Our macroeconomic

outlook and tax environment,

openness to foreign trade and

capital, the fi nancing available

and the tremendous market

opportunities.


Financial services for a changing world For financial services companies looking to expand, Ontario, Canada has the people, the technologies and the business environment that can help you grow rapidly – not just in Canada, but around the world.

A top-ranked centre for industry leadersOntario is the home of the Canadian banking system which the World Economic Forum identifi ed in 2010 – for the third year in a row – as the soundest in the world.

The U.K.-based Global Financial Centres Index (GFCI) ranks Toronto among the world’s top ten international fi nancial centres.

Canada’s financial powerhouse Ontario’s financial services industry is centered in the Greater Toronto Area (GTA) with smaller clusters in Waterloo, London and Ottawa, Ontario. The GTA is North America’s third largest fi nancial services hub after New York City and Chicago in terms of industry employment and GFCI ranking.

Among the foreign banks operating in Canada, 89% have their Canadian headquarters in the Greater Toronto Area: American Express, Citco, Goldman Sachs, ICICI Bank, ING Direct, Northern Trust, UBS and many others.

Banks, credit card and insurance companies have also established customer service centers, software development centers and back offi ce operations such as collections, accounting and transaction processing in smaller communities across the province.

The GTA is home to: • 10 domestic banks and 39 foreign bank subsidiaries

and branches

• the Toronto Stock Exchange, ranked 8th largest in the world based on domestic market equity capitalization, and the world leader in mining industry fi nancing

• 58 institutional pension funds

• 190 insurance companies including two of the largest 10 global life insurers and three of the four largest P&C insurers in Canada

• 80% of Canada’s investment management industry, representing $700 billion in assets

• 7 of the 10 largest global hedge fund administrators with sector total assets estimated at $32 billion

• a growing number of operational service providers including CIBC Mellon, State Street, RBC Dexia, Merrill Lynch Technology.

N

King and BaySimilar to New York’s Wall Street or London’s The City, the corner of King and Bay streets in downtown Toronto marks the geographic centre of Canada’s financial industry. Within a twenty minute walk are the head offices of most of Canada’s top banks, investment dealers, pension firms, insurers, accounting and legal firms and the Toronto Stock Exchange.


KING ST W

WELLINGTON ST WYO

NG

E STBAY STYORK STUN

IVERSITY AVE

GARDINER EXPY

FRONT ST W

BANKS

INSURERS

PENSION FUNDS

LAW FIRMS

ACCOUNTING FIRMS


A world-leading regulatory systemCanada has a sophisticated, highly advanced fi nancial system that is supported by an internationally respected regulatory and supervisory framework. For the third year in a row, The World Economic Forum ranked Canadian banks as the soundest in the world in its Global Competitive Report 2010-2011. Our regulatory system is updated every fi ve years to meet changing times.

In Canada, securities regulation is a provincial jurisdiction. In Ontario, the Ontario Securities Commission (OSC) has

that mandate. Ontario companies fi le their applications for prospectus approvals or exemptions with the OSC and, under Canada’s inter-provincial regulatory passport system, the decisions are usually accepted by the other provinces. Companies outside Ontario, however, must fi le applications in their home province as well as in Ontario, increasing their regulatory paperwork and likely extending the time to market.


Growth momentum draws billions in new investmentsOntario’s financial services sector has grown steadily over the past ten years (2000-2010), with employment rising by 31% compared to the 0.3% increase in the U.S. Toronto’s fi nancial services employment grew to 221,000 in 2010, an increase of 59,000 jobs during the same decade.

Professional business services, such as legal, accounting and management consulting, have also expanded in Ontario with employment growing by 37% between 2000-2010, creating 112,000 net new jobs.

Global leaders have recognized the competitive advantages of doing business here. In 2010, Canada’s fi nance and insurance sector attracted $5.4 billion in foreign direct investment, an increase of 7% over the previous year.

Top 10 global financial centres in 2011

1 London

2 New York

3 Hong Kong

4 Singapore

5 Shanghai

6 Tokyo

7 Chicago

8 Zurich

9 Geneva

10 TorontoSource: Z/Yen Group, March 2011


FAST FACTIn 2010, Canada’s fi nance and

insurance sector attracted

$5.4 billion in foreign direct

investment, an increase of

7% over the previous year.

“ Toronto is a hub with an incredible number of innovative companies active in the knowledge-based industry sector including leaders in technology, media, telecommunications, clean tech and life sciences. This makes the city a competitive player in the global knowledge economy. From a big-picture point of view, Toronto is developing a suite of cohesive and strategic policies that will cement the conditions for success in the knowledge-based sector. Toronto is therefore a

natural home of OMERS Strategic Investments, as it carries out its mission of incubating new investment platforms that will further OMERS’ reputation as a pension-based investment enterprise unlike any other in the world.”

John RuffoloSenior Vice-President and Head of Knowledge Investing, OMERS Strategic Investments


An exceptional workforce for innovative companiesOntario has a deep talent pool of highly trained professionals that companies need to develop and execute winning strategies.

Ontario’s fi nance and insurance sector employs 358,000 people, nearly half of them in banking. It includes 7,000 charter-holding fi nancial analysts (CFAs), more than 9,000 certifi ed fi nancial planners (CFPs) and more than 30,000 chartered accountants (CAs) – 20,000 of them in Toronto and the surrounding area.

A constant stream of new finance graduates We have 44 universities and colleges with thousands of students enrolled in degree, diploma and certifi cate programs in fi nance, accounting, business and information technology.

Our MBA programs have won international acclaim for the high quality of their graduates. Queen’s University School of Business, the Richard Ivey School of Business at the University of Western Ontario, the University of Toronto’s Rotman School of Management and York University’s Schulich School of Business are all ranked among the best in the world by publications such as The Wall Street Journal, Forbes and BusinessWeek.

The University of Toronto’s Rotman School of Management, which launched a new Master of Finance program in 2007, offers an MBA program that the Financial Times has ranked as one of the top ten worldwide in the ‘Best in Finance’ category for fi ve of the past seven years.


New global risk institute launched To build on Canada’s growing reputation in fi nancial risk management, a new Global Risk Institute in Financial Services (GRi) has been established in Toronto as a collaboration of regulators, risk experts, academics, policy makers and practitioners. The institute’s focus is on applied research and leading-edge thinking across multiple risk management disciplines.

An international centre for specialized industry educationIndustry professionals have come to Ontario from around the world for decades to learn the latest techniques in professional fi nancial services management.

For more than 40 years, CSI Global Education (formerly the Canadian Securities Institute) has been Canada’s leading

provider of professional credentials. Today, CSI also helps provide training in Asia, Europe, the Middle East, Central America and the Caribbean.

In terms of fi nancial supervision, more than 2600 fi nancial regulators from over 100 countries have taken professional development courses through the Toronto Centre.

Leveraging educational excellence To leverage the quality and diversity of fi nancial services education in Ontario, the Toronto Financial Services Alliance and the Ontario government established a Centre of Excellence in Financial Services Education. Among other roles, the Centre has an online talent engine that enables students to fi nd the programs they need to develop their skills, and allows growing companies fi nd the talent they need.


FAST FACTThe World Economic Forum

ranked Canada fi rst among

the G7 and third among 133

countries for the quality of

its management schools.

“ With more than 40 active research faculty members

and another 40+ corporate members, the University

of Waterloo’s Research institute in Insurance, Securities

and Quantitative fi nance (WatRISQ) is not only a

world-class centre in fi nancial risk management, it

is also perhaps the largest institute of its kind in the

world. The fi nancial crises of 2008-2009 demonstrated

that as global fi nancial systems become ever-more

complex, it becomes increasingly important to be able

to identify, analyze and manage the associated risks.

We contribute to the growth of that knowledge by

offering state-of-the-art programs at Waterloo and

workshops around the world, as well as working with

industry and government partners to develop more

effective solutions in risk management and fi nance.”

Thomas F. ColemanOphelia Lazaridis University Research ChairDirector, WatRISQUniversity of Waterloo

Employment in Ontario’s fi nancial services sector has grown by 31% over the past ten years, compared to a 0.3% increase in the U.S.

FINANCIAL SERVICES SECTOREMPLOYMENT INDEX 2000-2010

200070

80

90

100

110

120

130

140

2000 = 100

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

ONTARIO

US


High performance ICT services Financial services companies have discovered in Ontario the information and communications technology (ICT) talent and technologies they need to cost-effectively deliver high-value services.

Top quality ICT at very competitive pricesThe size and scope of Ontario’s ICT industry ensures that high quality IT services are available at competitive costs.

With 16,000+ fi rms and revenues of $75 billion+ annually, the industry includes home-grown high performers – Research In Motion, Open Text, Certicom, Celestica – and global giants such as Accenture, Alcatel-Lucent, Ericsson, HP, Microsoft, Oracle and Siemens.

The Greater Toronto Area is North America’s third largest centre for ICT, surpassing Chicago, Boston and Los Angeles. We also have signifi cant ICT clusters in the Kitchener-Waterloo and Ottawa regions.

Algorithmics, the world’s leader in enterprise risk management software, was founded in Toronto in 1989. Today its worldwide client list includes 70 of the world’s top 100 banks.


A cost-efficient business environment Business costs in Ontario are lower than in any G7 jurisdiction, according to KPMG’s Competitive Alternatives 2010.

Employer healthcare costs for a typical fi rm here are about one-third the U.S. average.

Ontario also offers a wide range of programs such as the Apprenticeship Training Tax Credit Program that can help cut labour costs.

Competitive Business CostsOverall Business Costs Index (U.S.=100)

Source: KPMG and MEDT 2010

“ In the highly complex and dynamic world of global banking, it is

critical to have the very best people. Our growing technology center

in Toronto benefi ts from the breadth and depth of the banking and IT

talent pool, the world-class education and research centers, the cost of

doing business, the inclusive environment, and the high quality of life

for our employees. We continue to be impressed by the calibre of our

technologists in Toronto who everyday deliver superior services to our

global business partners.”

Colin Lindsell-OcioCTOBank of America Merrill Lynch in Canada

Ontario 95.6

U.K. 98.2

France 98.3

U.S.A. 100.0

Italy 100.0

Germany 102.6

Japan 107.6


“ Since Manulife was established in 1887, we have grown into one of the world’s leading insurance and fi nancial services companies. We serve clients both within Canada and in more than 20 other countries and territories. We began doing business in the United States in 1903 and in Asia in 1897 - and today, we have one of the most extensive Asian operations of anyone in the fi nancial services space.

With our global head offi ce in Toronto, we have found in Ontario the talent, technologies and forward-thinking business environment that have helped us build a company that thrives on change, new opportunities and meeting the needs of customers worldwide.”

Michael R. LandryVice President, Corporate DevelopmentManulife Financial


Business tax cuts to fuel long-term growthOntario has launched a comprehensive tax reform program to fuel business growth.

Ontario’s marginal effective tax rate (provincial and federal combined) on new capital investment plummeted to 18.6% in 2010 from 32.8% in 2009 and will continue to drop to 16.2% by 2018.

Toronto fi rms already pay signifi cantly lower corporate taxes than their competitors in any major U.S. city, according to KPMG’s Competitive Alternatives 2010 Special Report: Focus on Tax which studied the total tax impact (corporate income taxes, capital taxes, sales taxes, property taxes, miscellaneous local business taxes and statutory labour costs) as it affects different industries in different cities. For companies in the corporate and IT service sectors, the total tax impact in Toronto was approximately two-thirds the U.S. average and much lower than the tax burden in Chicago or New York.

Toronto taxes lower than other major financial centresTotal tax index for corporate and IT services

Source: KPMG

“ When Northern Trust established a centre of

excellence for portfolio analysis, our Toronto offi ce

offered the right mix of investment talent and

connectivity for this global capability. Ontario’s

fi nancial community benefi ts from a well-educated

and highly skilled workforce, a perfect fi t for

Northern Trust’s client base of sophisticated individual

and institutional investors.

As a global fi nancial institution, Northern Trust has

offered asset management and asset servicing from

our Toronto offi ce for 20 years. We understand the

advantages offered by Ontario and our new portfolio

analysis desk demonstrates our commitment to doing

business here.”

Robert J. BailliePresident and Chief Executive Offi cerNorthern Trust Canada

Toronto, CA 68.4

London, U.K. 87.1

Amsterdam, NL 91.9

Chicago, U.S. 99.7

U.S. average 100.0

Boston, U.S. 101.5

New York, U.S. 102.0

Los Angeles, U.S. 103.9

Financial Services in OntarioFinancial Services in Ontario14

Easy access to key markets and customersWe’re part of the $17 trillion NAFTA marketplace. There are 153 million affluent consumers within a day’s drive of Ontario. We’re a 90-minute flight from major U.S. centres such as New York, Chicago and Boston.

Our central location in North America means we work in the same time zone as many U.S. clients. We have similar business practices and terminologies as our U.S. neighbours. We have similar laws concerning intellectual property, data security and privacy – similarities that reduce miscommunication and increase levels of understanding, trust and security.

We also have solid business and cultural ties with the U.K., Europe and Asia.

Ontario has five international airports – Toronto, Ottawa, Hamilton, London and Thunder Bay. The largest – Toronto’s Pearson International Airport – offers non-stop and same-plane service via 75 carriers to 180 destinations worldwide.

Toronto’s City Centre Airport, which is a 10-minute drive from the downtown financial core, offers multiple daily flights to New York, Chicago, Montreal, Ottawa and other regional destinations.

FAST FACTMore than 150 languages are

spoken in Ontario. That can

create a signifi cant business

advantage for companies that

need to communicate clearly with

suppliers, customers and business

networks around the world.


FAST FACTToronto is ranked among the

top fi ve cities globally in the

Economist Intelligence Unit’s

2011 Liveability Index.

And after work? An exceptional quality of lifeOntario offers high-quality universal healthcare, one of the best public education systems in the world and safe communities that consistently score well in international comparisons of cost-of-living and quality-of-life.

We also have excellent golf courses, world-class art galleries, jazz clubs, live theatre, award-winning wineries and major cultural events such as the International Festival of Authors and the Toronto International Film Festival.

Because of all this, Ontario has become a global magnet for innovative companies and talented, creative professionals. We are a diverse, multicultural society in which more than 150 languages are spoken. No matter where you come from, you can feel at home in Ontario.


FAST FACTAmong the world’s top

26 centres for fi nance,

commerce and culture,

Toronto ranked second overall

– just behind New York – in

PricewaterhouseCooper’s fourth

annual Cities of Opportunity

2011 report. The judges

cited particular strengths

in intellectual capital and

innovation, as well as health,

safety and security.

“ Canada is an excellent place to do business. In less

than a decade, ICICI Bank Canada has grown from

zero to an operation with $5.3 billion in assets and it

is active in all provinces and territories with a diverse

customer base. This can be largely attributed to

Canada’s knowledgeable consumers, an open market

that welcomes international players, and a secure

regulatory system. Our bank has also benefi ted from

a tremendous pool of talented and highly educated

workers in Ontario, the fi nancial services centre in

Canada. We have been able to engage many quality

staff locally and they have been integral in our bank’s

tremendous growth. We are extremely pleased to have

chosen Ontario as the home of ICICI Bank Canada.”

Sriram H. Iyer President and CEO ICICI Bank Canada

Financial Services in Ontario

We can helpCall us for more detailed information on industry clusters, the availability of skilled workers and up-to-date economic data.

We can also assist with:

• coordination of site selection and community visits

• contacts with federal, provincial and municipal officials, utility companies, transportation organizations and business facilitators

• business immigration regulations and requirements.

For more information, please visit us at: www.InvestInOntario.com

http://www.InvestInOntario.com

For more information about investing in Ontario,

please visit us at: www.InvestInOntario.com

The world works here.

For a list of our international phone numbers to

contact us: www.InvestInOntario.com/ContactUs

E-mail: [email protected]

Ontario Investment and Trade Centre

35th Floor, Eaton Centre

P.O. Box 1, 250 Yonge Street

Toronto, Ontario M5B 2L7

Canada

T (416) 313-3469 • F (416) 360-1817

Printed in Ontario on recycled paper

© Queen’s Printer for Ontario, 2011

016608-ENG/08/11

www.InvestInOntario.com


http://www.InvestInOntario.com/ContactUs

mailto:[email protected]


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New opportunities for global innovators - TFSA · The world works here. Financial Services in Ontario New opportunities for global innovators