A leading advisor questions the rollout of CRM2.
The latest evolution of Canadian customer relationship management rules, the implementation of the so-called CRM2 regs, went ahead July 15th. Since then there has been little mention in the mainstream media of this momentous shift. Apart from some articles in the trade press, few average Canadians likely have any idea of what’s happening.
The lack of publicity has some advisors wondering whether something more could have been done to explain to clients the new information they will receive.
"The major problem with CRM2 is that there is no consumer awareness program being conducted by the securities administrators to inform investors of the changes," Arthur Charles Salzer tells WP in the latest issue of the magazine. "There is no effective investor outreach program from the regulators to help consumers understand the changes that will occur and explain why advisors are moving to a MWRR."
So-called money weighted rate of return, or MWRR, is the new common method used to calculate the performance of an investment fund. This is a different method than so-called time weighted rate of return, or TWRR. Relatively few outside the investment industry could be expected to understand the differences between the two. The worry is that many in the general population won’t understand what is being presented to them.
Any thoughts on the roll-out of CRM2?
The lack of publicity has some advisors wondering whether something more could have been done to explain to clients the new information they will receive.
"The major problem with CRM2 is that there is no consumer awareness program being conducted by the securities administrators to inform investors of the changes," Arthur Charles Salzer tells WP in the latest issue of the magazine. "There is no effective investor outreach program from the regulators to help consumers understand the changes that will occur and explain why advisors are moving to a MWRR."
So-called money weighted rate of return, or MWRR, is the new common method used to calculate the performance of an investment fund. This is a different method than so-called time weighted rate of return, or TWRR. Relatively few outside the investment industry could be expected to understand the differences between the two. The worry is that many in the general population won’t understand what is being presented to them.
Any thoughts on the roll-out of CRM2?
