FundSERV Prepares for CRM2

par Andrew Rickard | March 09 2015 09:39AM

FundSERV has upgraded its network in preparation for when the new Client Relationship Model 2 (CRM2) disclosure rules come into force.

The regulators’ CRM2 initiative is meant to give investors easy-to-understand, detailed information about the cost and performance of their mutual funds. Clients will receive reports which break down how much compensation a dealer firm receives on their investment products. They will also be able to see how well their investments have performed since they started to invest, as well as their personal rate of return over different time periods.

DeLaurentiis_JoanneOn March 5, FundSERV announced that its conversion from flat files to XML files is complete, which means that fund managers will be able to report trailer fees and commissions at the investor account level. This will give dealers the ability to prepare the new cost and performance reports that they will be required to provide by the end of 2016. In addition, FundSERV says it has enhanced FUNDcom, the portal that provides financial advisors, their assistants, and head-office administrators with account information from 280 fund companies.

The Investment Funds Industry of Canada (IFIC) welcomed FundSERV’s announcement. “Their success in completing this massive systems upgrade on schedule significantly advances dealer preparation of the new cost and performance reports required by CRM2,” said IFIC president and CEO Joanne De Laurentiis. “CRM2 will lead to more informed investors, which will result in better conversations between investors and advisors. The industry is embracing the changes, and is working collaboratively to ensure their smooth implementation.”