younger-advisor-impressing-new-clients

The IFIC  has released two model reports – one on investment performance and the other on charges and other compensation paid to dealers/advisors – to help the funds industry deliver on the next phase of CRM2.

Read: Use CRM2 to prove your value

“We have taken the raw templates prepared by the regulators and further simplified the language, created easy-to-follow layouts, and added plain language explanations of many of the terms,” says Joanne De Laurentiis, IFIC’s president and CEO.

The report on investment performance will help investors understand whether they are on track to meet their financial goals by showing the investor’s personal return – in dollars and percentages – based on their  individual contributions and withdrawals and on changes in market value that have occurred in the account.

Meanwhile, the report on charges and compensation will tell investors how much has been paid – in dollars and cents – to their dealer firm for the services that the investor received.

Read: Editorial: Fix these 3 systemic problems

Also, a companion guide will help dealers adopt the model reports effectively. It provides clarification regarding referral fees and the schedule of costs. It notes that dealers should be sensitive to the visual needs of seniors in the design of their reports.

Originally published on Advisor.ca
See all commentsRecent Comments

VSIVA

Unless full transparency of reporting the total MER/TER that investors pay for their investments, partial disclosure of only the commission and trailing commission paid by the clients will be a failure. This is only helping the banks to hide their TER from clients and why bank funds charge higher MER? In order to meet this challenge in the best interest of Canadians, global financial powerhouses like Fidelity and Invesco should open branch offices in major cities, employ staff, market their products and services. Like the banks, they need not report their MER /TER.

Wednesday, April 15 @ 9:52 am //////

VSIVA

The fund performance should be reported as follows and lines for pre and post-fee performance for the investors to know how their portfolio performance and the total fees paid;

Cumulative Performance (% in GBP) to 31 March 2015
Period 3mths 6mths 1yr 3yrs 5yrs 10yrs Since Launch

Fund return 10.3 15.4 30.3 44.8 68.2 333.9 425.2
Benchmark return 9.7 13.2 19.4 29.9 35.6 207.0 266.9
Sector return 9.3 12.7 19.6 30.9 38.5 216.6 264.8
Quartile rank 2 1 1 1 1 1 1

Wednesday, April 15 @ 9:18 am //////

Add a comment

You must be logged in to comment.

Register on Advisor.ca