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Our coverage of CRM2 regulations

Check back here for Morningstar's take on regulatory changes for financial advisors.

Morningstar Canada 20 July, 2016 | 12:00PM
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A new era of transparency for investors on the reporting of fees and performance by their financial-services providers is now here. Under regulatory initiatives known as the Client Relationship Model, Phase 2 -- or CRM2 -- various new disclosure requirements have been phased in over the past few years.

Effective July 15, 2016, investment brokers and dealers are now required to provide two new annual documents. One is an account-performance report, summarizing how investors did over various standard measurement periods. This report requires the calculation of money-weighted rates of return, customized according to when new money was deposited or taken out of the account.

The other new required report, as of July 2016, is a disclosure of fees and other charges paid to the investment dealer. This report will itemize the cost of everything from embedded trailer-fee commissions, to redemption fees, point-of-sale commissions, switching fees and RRSP administration fees, and provide an aggregate dollar figure for the 12-month period.

Morningstar has provided extensive coverage at each step of the implementation of these various measures since they were first announced in 2013. Below is a list of the articles and videos Morningstar has published on this topic, as well as additional resources provided by the regulators.


Money-weighted reporting will soon be mandatory
There's bound to be some sticker shock for investors.
By Rudy Luukko | 15/07/16

The days are numbered for embedded fund commissions
Regulators seek consultations on transition measures.
By Rudy Luukko | 29/06/16

Seg-fund regulators seek to close regulatory gap
Investor protection weaker than for mutual funds, consultation paper says.
By Rudy Luukko | 20/05/16

CRM2 won't solve tax-reporting headaches
Client statements require disclaimers, industry groups say.
By Rudy Luukko | 15/04/15

What CRM2 will mean to you
Disclosure reports will empower investors and challenge advisors.
By Rudy Luukko | 20/10/14

CRM2 and the future of advice: Part 1
The costs and benefits of game-changing disclosure rules.
By Rudy Luukko | 11/11/14

CRM2 and the future of advice: Part 2
Will new disclosure rules prompt an investor migration?
By Rudy Luukko | 13/11/14

Raising the standards for investment statements
Statements don't always supply much detail—but are investors demanding more?
By Jess Chapman | 16/11/15

The rise of robo-advisors
Morningstar Executive Forum discusses the online investment-management landscape.
By Craig Sebastiano | 23/02/16

Regulatory changes create challenges for investment industry
Experts shared their concerns over CRM2 initiatives at Morningstar Executive Forum.
By Michael Ryval | 23/10/14

Winds of regulatory change favour ETFs
Morningstar Executive Forum panellists cite impact of greater fee disclosure.
By Ashley Redmond | 09/03/15

The next round of the great fund-fee debate
Rule changes affecting dealer payouts may be years away.
By Rudy Luukko | 17/10/13


CRM2: More work to be done?
New rules on fee disclosure and performance reporting are a good start, says David O’Leary.
By Christian Charest | 07-18-2016

Regulators move to improve the investor experience
Canada's securities regulators want both investors and advisors to have more information on their side.
By Rudy Luukko | 05-05-2016

Invesco's President Peter Intraligi gives his take on fees
By Rudy Luukko | 02-06-2014

Trailer-fee ban on Steadyhand president's wish list
By Rudy Luukko | 12-04-2014

Other resources

IFIC guide for mutual fund dealers

CSA research on mutual fund fees

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