New Checklist from IFIC Helps Dealers with 2015 CRM2 Requirements

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New Checklist from IFIC Helps Dealers with 2015 CRM2 Requirements

April 1, 2015

Toronto – April 1, 2015 – The Investment Funds Institute of Canada (IFIC) has released a new document aimed at helping dealers prepare for Client Relationship Model Phase 2 (CRM2) rules coming into effect in 2015. Prepared by IFIC with input from the Mutual Fund Dealers Association, Dealer Checklist: CRM2 2015 Requirements (https://www.ific.ca/wp-content/uploads/2015/03/Dealer-Checklist-CRM2-2015-Requirements.pdf/10240/) includes insights and practical information to support dealers as they prepare to incorporate new required elements into their client account statements.

“Recent discussion of CRM2 has centred on the 2016 changes, but significant improvements to client account statements come into force this year and we wanted to help make sure dealers were ready for them,” said Joanne De Laurentiis, president and CEO of IFIC.

The checklist summarizes the 2015 required additions, identifying which elements must be satisfied by prescribed language and which can be addressed through plain language. Where plain language is permitted, the checklist offers suggested wording that satisfies or exceeds CRM2 rules and regulators’ expectations.

The checklist is a ‘one stop tool’ that brings all of the elements of the December 2015 requirements together. “We are making the checklist available to all dealers – members and non-members of IFIC – to help the industry meet both the letter and spirit of the rules,” stated De Laurentiis. “We hope that all dealers will adopt the plain language text and recommended approaches the new checklist provides,” De Laurentiis added.

The dealer checklist is just one of the items that IFIC and its members are creating and sharing as they work to deliver the investor experience envisioned under CRM. IFIC previously released plain language explanations of benchmarks (https://www.ific.ca/wp-content/uploads/2014/07/Advisor-Insights-Benchmarks-Disclosure-%E2%80%93-IFIC-branded-July-2014.pdf/8328/) and pre-trade disclosure of costs (https://www.ific.ca/wp-content/uploads/2014/07/Advisor-Insights-Pre-Trade-Disclosure-%E2%80%93-IFIC-branded-July-15-2014.pdf/8330/). Materials to assist dealers and advisors in preparing for the 2016 requirements will be released soon.

About CRM2

The purpose of CRM2 is to ensure all investors receive timely, easy-to-understand information about the cost and performance of their investments. The mutual funds industry supports CRM2 and believes the changes will allow investors to make better informed decisions about their investments. Informed investors are more committed to saving and creating a more secure financial future for themselves and their families.

CRM2 is being phased in over three years. In 2014, dealers were required to disclose pre-trade costs and provide a general description of benchmarks. As of December 2015, dealers will be required to report on all investments – client name and nominee-held positions – and several changes will be required to account statements. In 2017, investors will receive a report showing, in dollar amounts, the money paid to dealers on the investor’s account during 2016. A separate report will tell investors how well their investments have performed in dollar terms and percentage terms over several time periods ending in 2016. Investors will receive these reports annually.

About IFIC

The Investment Funds Institute of Canada is the voice of Canada’s investment funds industry. IFIC brings together 150 organizations, including fund managers, distributors and industry service organizations, to foster a strong, stable investment sector where investors can realize their financial goals. By connecting Canada’s savers to Canada’s economy, our industry contributes significantly to Canadian economic growth and job creation. The organization is proud to have served Canada’s mutual funds industry and its investors for more than 50 years.

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For more information contact:
Sara Clodman
Senior Manager, Public Affairs
The Investment Funds Institute of Canada (IFIC)
Phone: 416-309-2317
Email: sclodman@ific.ca
Website: www.ific.ca

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