The Mutual Fund Dealers Association of Canada (MFDA) on Monday published a new implementation guide on the Client Relationship Model Phase 2 (CRM2) reforms that provides dealers with tips on complying with the forthcoming rule changes.
The CRM2 amendments introduce a variety new measures that deal with account statements, the disclosure of client charges and compensation, and performance reporting. The amendments are being adopted over a three-year period, with the final phase of new requirements due to take effect on July 15, 2016.
Fund dealers may face a number of decisions when it comes to implementing these new requirements, and the implementation guide aims to help with those decisions.
For example, the guide recommends that firms develop a communication plan to update clients on the new information they will be receiving. It also advises firms to “plan ahead to ensure there is sufficient time to develop, test and implement changes”.
Firms contact their systems providers “to discuss the changes and consider asking them to provide a demonstration to you and the MFDA”, the guide suggests, and it encourages dealers to train and educate their staff and reps on the new requirements, and any changes that are being made to the firm’s practices as a result of the new requirements.