If you use a financial adviser or hold mutual funds, take a close look at your first statement of 2016. You should notice a few changes. On January 1, Client Relationship Model–Phase 2, known as CRM2 in finance circles, came into effect. This rule forces financial firms to break out the costs associated with an investment on the reports they send their clients. Those managing your money will also have to show whether a fund is subject to a deferred sales charge—a fee an investor pays if a fund is sold before a specific time—and what the penalty would be for selling early.
A client’s annual report will have even more detail, says Don Murray, chairman of the Manitoba Securities Commission (MSC) and vice-chairman of the Canadian Securities Administrators (CSA), which imposed CRM2 after four years of consultation.
BRYAN BORZYKOWSKI – Canadian Business – February 17, 2016.
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