The IFIC has released two model reports – one on investment performance and the other on charges and other compensation paid to dealers/advisors – to help the funds industry deliver on the next phase of CRM2.
Read: Use CRM2 to prove your value
“We have taken the raw templates prepared by the regulators and further simplified the language, created easy-to-follow layouts, and added plain language explanations of many of the terms,” says Joanne De Laurentiis, IFIC’s president and CEO.
The report on investment performance will help investors understand whether they are on track to meet their financial goals by showing the investor’s personal return – in dollars and percentages – based on their individual contributions and withdrawals and on changes in market value that have occurred in the account.
Meanwhile, the report on charges and compensation will tell investors how much has been paid – in dollars and cents – to their dealer firm for the services that the investor received.
Read: Editorial: Fix these 3 systemic problems
Also, a companion guide will help dealers adopt the model reports effectively. It provides clarification regarding referral fees and the schedule of costs. It notes that dealers should be sensitive to the visual needs of seniors in the design of their reports.