BCSC releases videos to explain CRM2

By Andrew Rickard | September 14 2016 01:30PM

The British Columbia Securities Commission (BCSC) has created a series of videos to explain changes in the way financial advisors are required to report the costs and performance of investments to clients.

The BCSC published five videos on both its own website and on on September 13, and says they were created to help investors understand the new information they will receive from their advisors under the second phase of the Client Relationship Model (CRM2). While the reporting requirements came into effect in July, the regulator notes that firms have until July 2017 to start providing their clients with this new information.

The five videos discuss:

  • enhanced relationship disclosure information
  • pre-trade disclosure of advisor fees and other charges
  • expanded account statements
  • annual reports on investment performance
  • annual reports on charges and compensation

"Our research has shown that many investors are not asking important questions about their investments, such as what fees they pay to their advisor and how their investments are performing," says BCSC executive director Peter Brady. "The new CRM2 requirements will ensure that investors receive that information and are empowered to discuss fees and performance with their advisors."






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