Year in Review 2024
Year in Review 2024
Economic and Market Overview
Reflecting on last year’s "Year in Review," I noted how 2023 had been a positive year for the economy and stock markets. Fast forward to today, and we’ve witnessed a similar story unfold in 2024. Against all odds, U.S. financial markets delivered another year of strong performance, and the economy successfully sidestepped a recession. Markets recorded impressive gains of 13% for the Dow, 23% for the S&P 500, 29% for the Nasdaq, 12% for the Russell 2000 Index, and 18% for the TSX.
While the US economy avoided significant contraction, inflation was undoubtedly the central economic theme of 2024. The U.S. experienced a notable increase in labour productivity, driven by strategic business investments, robust small business activity, immigration, and forward-looking federal policies. Over the past six quarters, labour productivity has risen by an average of 2.6%. Inflation, which reached a staggering 40-year high of 9.1%, has now eased to 2.9% as of July 2024—a testament to economic resilience and effective policy intervention.
What Has First North Been Up To?
Transformative Business Growth
2024 was another year of significant transformation in the business landscape, and we at First North are proud to have played a key role in counseling and advising our pan-Canadian clients toward success. Since the introduction of our four pillars—Front Office and Wealth Advisory, Mid & Back Office Operations, Technology & Industry, and Capital Markets, Regulatory & Compliance Management—each of our business lines has been deeply engaged in providing expert guidance and innovative solutions to clients across the financial services sector.
Our growth trajectory this past year was marked by new agreements with leading financial institutions, expanding our client base and influence. We are also in the process of finalizing additional partnerships with some of the largest and most impactful players in the industry, ensuring that First North continues to deliver innovative solutions and unparalleled expertise to our clients.
Expanding Industry Insights and Influence
Our reach and involvement within financial services have continued to grow, allowing us to provide meaningful value in a rapidly evolving market. For instance, our strategic collaborations with some of Canada’s largest financial institutions have significantly enhanced our capabilities while expanding our impact across a broader client base. Additionally, we offered strategic insights to both clients and non-clients regarding the Dealer Book of Record space, particularly in response to the acquisition of Kyndryl-SIS by Broadridge. This area has been marked by substantial shifts, including the entry of new players such as FIS® Post Trade Processing Platform (formerly Torstone Inferno) and FNZ, further driving change and competition in the industry. Building on this momentum, we also shared valuable opinions and guidance on reconciliation practices, further solidifying our reputation as thought leaders.
We were also engaged to perform a comprehensive review of 13 portfolio management systems, conducting an in-depth analysis of their functional and operational capabilities. This project demonstrated our expertise in navigating complex system evaluations and delivering strategic guidance, further reinforcing our position as trusted advisors in the asset and wealth management sector.
Trends in Asset Management
In Canada, the management of client assets continues to undergo a notable shift, transitioning from transactional relationships toward professional or discretionary models. As a result, this space is experiencing heightened interest and competition, fueled by growing participation from both U.S. and international providers. This increasing engagement is driving significant innovation and adding competitive pressure to an already dynamic market.
Business Transformation and AI
It comes as no surprise that business transformation and AI / Hyper Automation remained prominent themes with our clients. Through our strategic partnership with FPT, a related company to First North, we have delivered expert advice and innovative solutions to address evolving business challenges. While AI offers significant potential to solve complex problems, its success depends on three critical factors:
Clearly defining organizational objectives or issues.
The ability to adapt to ever-changing systems.
The quality and integrity of data being utilized
Priming and Iterative training and testing of AI systems
In our experience, AI continues to evolve and, when effectively leveraged with the right framework, can drive meaningful progress for businesses across industries.
Capital Markets and Regulatory Milestones
Our Capital Markets, Governance & Regulatory Solutions pillar also achieved key milestones in 2024. We expanded our team with experts in investment management compliance, compliance operations, IT/systems compliance, and governance. With over a decade of compliance experience in bank-owned and independent asset management, Caitlin Gossage joined our team as Sr. Regulatory and Compliance consultant, further strengthening our ability to deliver impactful solutions.
We enhanced our industry presence by participating in the MX Canadian Annual Derivatives Conference. In collaboration with SIDE Exchange, Caitlin led our inaugural compliance education session, providing valuable insights on conflicts of interest and client-focused reforms tailored for OSC registrants.
Notably, First North was honored to be approved by the Ontario Securities Commission as Compliance Consultant & Monitor in connection with registrant terms and conditions—a testament to the trust placed in our expertise. This achievement underscores our commitment to excellence in this vital area.
Recognitions and Memberships
We are thrilled to celebrate Paula Amy Hewitt, who leads our Compliance pillar. Paula was recognized as one of the 2025 Best Lawyers for Public & Administrative Law and, for the third consecutive year, was named among the Top 200 Global Psychedelic Lawyers. Her leadership continues to inspire and elevate our work.
This year, we proudly became a member of the Investment Funds Institute of Canada (IFIC), further solidifying our commitment to the financial services sector. As part of our membership, we are actively participating as industry experts on key subcommittees, including Operations and Legal & Compliance, where we contribute our insights to help shape industry standards and best practices. We were also honored to lead and moderate a high-profile panel featuring some of the industry’s most prominent Portfolio Managers at IFIC’s Annual Conference in Toronto, highlighting our thought leadership and expertise.
Thought Leadership and Publications
As trusted experts and consultants, we are frequently called upon to share our insights and perspectives within the financial services sector. In June, we published a white paper, written by VP of Business Transformation, Renatto Soldi, titled “Six Points to Consider for a Back Office System Conversion,” which generated considerable interest across the industry. Looking ahead, we are committed to expanding our contributions by delivering even more thought leadership content across our four pillars of expertise. This ensures we continue to provide actionable insights and meaningful value to our clients and the broader marketplace.
What’s Next for First North?
As we continue to evolve our brand and expand our capabilities, we are excited to share that we have been hard at work rebuilding our website. The contemporary design promises to deliver an enhanced user experience and improved functionality, making it easier for you to connect with us and explore our offerings. The launch is set for January—right after we update our team photos!
In addition, we will be introducing a new newsletter to keep you informed about the latest industry changes and provide insights to help you stay ahead. Stay tuned for more updates!
As we move forward, we remain committed to delivering exceptional value and insights that empower our clients to navigate challenges and seize opportunities. Thank you for trusting us as your partner in success. Stay connected for more updates, and do not hesitate to reach out—we are here to help you achieve your goals and objectives every step of the way.
