CRM2 has been on your mind for the last few years. And now, the third phase of the new disclosure framework is in effect.
As a result, dealers are required to issue two new reports to investors.
- One must show, in dollar amounts, the money paid to the dealer on the investor’s account during the previous year; and
- another must show how a client’s investments have performed.
Dealers have until July 14, 2017 to start delivering these reports to investors. However, most clients will start receiving their reports early in 2017, and annually thereafter, because most firms will be providing this information on a calendar-year basis.
So make sure you’re prepared and have answers to your clients’ questions. “The new reports will encourage investors to [ask] advisors about the costs and performance of their investments,” says Joanne De Laurentiis, IFIC’s president and CEO. “CRM2 places Canada firmly ahead of the rest of the world in providing clear information to investors.”
This infographic (provided by IFIC) will help you explain CRM2 to clients. It distinguishes between the services offered by fund managers, dealers and advisors. Also, click here to watch a video about CRM2 and what it means for the industry.
For more on CRM2 and how it will affect you, read:
And, for a laugh, read: Here’s how to make a CRM2-compliant peanut butter sandwich
Plus, here are some related compliance links: