Category Archives: CRM2

CRM2 and the Art of the Conversation: Practice, Practice, Practice!

by Cameron O. Anderson

When the Client Relationship Model – Phase 2 (CRM2) comes into effect in July 2016, it will greatly increase the transparency between advisor and client, especially around fees.  This is going to lead to a lot of tough client conversations and will vastly increase the need for excellent communication skills from advisors.

There are some excellent training and consulting firms working with advisors in Canada to help them better understand and manage CRM2 regulations. These firms supply value-added services: everything from providing reporting templates, to supplying e-learning to traditional, instructor led training in positioning the value of advisor fees. However the impact and effectiveness of these companies would be substantially increased if the advisors were given the opportunity to engage in realistic, scenario-based CRM2 conversations. The opportunity to practice answers to the tough questions and objections their clients are sure to ask would equip advisors to avoid the worrying business repercussions that are predicted.

What is CRM2? CRM2 amendments came into effect on July 15, 2013 and are being phased-in over a three-year period. These amendments introduce new requirements for reporting the costs and performance of investments to clients, as well as the content of their accounts. The requirements apply to dealers and advisors in all categories of registration, with some application to IFMs as well. For more information about these amendments, see CSA Notice of Amendments to NI 31-103 and to 31-103CP (Cost Disclosure, Performance Reporting and Client Statements) On December 31, 2015 (delayed from July 15, 2015 at the request of the industry), expanded account statement requirements will be implemented. These include requirements to provide cost information and to determine market values using a prescribed methodology for most securities owned by clients, including those held in a client’s name. Continue reading

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