The implementation of the second phase of Client Relationship Model (CRM2) reforms is one step closer, as The Mutual Fund Dealers Association of Canada (MFDA) has approved proposed amendments to self-regulatory organization (SRO) rules to implement the remaining CRM2 requirements.
The MFDA said Thursday that members, at its annual general meeting on Dec. 3., approved the SRO’s version of the rule amendments that are required to implement the CRM2 reforms.
The amendments are primarily designed to improve transparency to clients about the costs of investing and the performance of client portfolios. They are due to take effect in July 2015 and 2016.
The first tranche of amendments came into effect in July of this year. The more significant reforms, such as the introduction of new annual cost and performance reports, have a longer transition period.
The Canadian Securities Administrators (CSA) have already finalized their version of these rules. The SROs are expected to amend their own rules to conform to the CSA’s requirements, and to follow the implementation timeline established by the CSA.
The MFDA’s amendments are now awaiting approval by the securities commissions before they become final.