CRM will improve client decisions: IIAC

By Staff | October 28, 2014 | Last updated on October 28, 2014
1 min read

CRM is “an effective framework for improved disclosure” and “encourages better advisor interaction with the client to improve the calibre of financial decision-making,” IIAC president and CEO Ian Russell says in his latest industry letter.

Read: Don’t lose clients over CRM2

“Despite the availability of educational tools from a multitude of sources, the investor take-up is minimal. You can take a horse to water, but you can’t make it drink. Most investors are disinclined to take time to learn more about investing, until the time they need it and that is usually when they start working with an advisor,” says Russell.

“The close client-advisor relationship strengthened by enhanced suitability review under CRM provides the most effective forum for educating the client and contributing to good decisions.”

Streamlining the disclosure process is key, adds Russell.

“The evidence that confirms investors fail to read disclosure materials due to complicated subject matter and the disinclination to invest needed time argues for stepped-up efforts to streamline and simplify disclosure documents. For example, prospectuses and continuous disclosure documents should provide a concise, two-page plain-language overview of issues material to the investment decision.”

Read more here.

Also read:

Meeting the challenge of CRM2

Boutique firms should buy competition: IIAC staff


The staff of have been covering news for financial advisors since 1998.