The Investment Funds Institute of Canada (IFIC) has released a guide to help mutual fund dealers deliver on the final phase of CRM2.

Read: Brush up on CRM2 referral fee rules

The final phase comes into effect July 15, 2016. Dealers have one year—until July 14, 2017—to issue the first set of reports to investors. However, most investors will begin receiving these reports early in 2017. This is because most firms are choosing to provide the information on a calendar-year basis.

IFIC is also re-issuing (with minor changes) the model reports that it published in 2015. They emphasize the power of using plain language, simple designs and clear explanations to improve investor understanding.

  • The report on investment performance will help investors understand whether they are on track to meet their financial goals by providing each investor with his/her personal rate of return.
  • The report on charges and compensation will indicate how much money was received by the dealer firm over the previous year to provide services to the individual investor (e.g., coaching investors to create and follow a plan, buying and selling securities, keeping detailed records, providing reports and on-line access, supervising accounts, and more). The report does not indicate how much is paid to the advisor, as each dealer firm determines this amount differently based on the way it splits responsibilities for these services between the firm and the advisor.

Also read:

IIROC revises CRM2 FAQs

New CE course: How to estimate stock and bond returns