The Canadian Investment Industry is increasing its transparency and reporting of costs/expenses and investment returns in 2017.  This increased transparency and disclosure is the result of recent regulatory changes called the Customer Relationship Model 2 or CRM2.  Our team feels that these new regulatory changes will improve the Canadian Financial Services Industry and give the public a more accurate picture of their relationship with their advisor or financial services provider.

Important areas within this new regulatory framework are:

  • Improved understanding of how well (or poorly) investments are performing in a standardized format
  • Improved understanding of the cost of working with their advisor or investment firm in a standardized format.  Most Investment firms registered with the Investment Industry Regulatory Organization of Canada (IIROC) fall within this new regulation.  This includes most investment and wealth management firms including discount brokerages.
  • Improved ability to gauge whether the level of expense paid is in line with the following:

          1) Financial advice, level of expertise, and available resources

          2) Investment returns

          3) Overall relationship with the investment firm and advisor

If you have investments with a firm regulated by IIROC, you should receive 2 documents with standardized information for each account:

  • Annual Charges and Compensation Report
  • Annual Investment Performance Report

If the information in these two reports do not align with your understanding of your overall relationship with your current advisor or financial services provider, do not hesitate to contact our team for our experienced, qualified, and professional opinion.

Below are a few articles that discuss elements of this new regulatory framework: