The Mutual Fund Dealers Association of Canada (MFDA) has released an updated document responding to frequently asked questions (FAQ) surrounding the implementation of the second phase of the client relationship model (CRM2).
The MFDA’s FAQ update, released on Friday, seeks to provide further clarification regarding the following issues:
> Examples that demonstrate when general disclosure on an account statement is permitted to inform the client of the name of the party that holds or controls each investment and a description of the way it is held.
> Charges and compensation disclosure, including a dealer member’s obligation regarding the disclosure of referral fees.
> The dealer member’s methodology in choosing an account’s inception date for performance reporting purposes, if a date other than the actual inception date is used.
The full document can be found on the self-regulatory organization’s (SRO) website.
The SRO is also encouraging its members to meet with MFDA staff to review the content of their new CRM2 client reports.
“Given that the new reports are first due to be delivered in early 2017, members and service providers should, at their earliest convenience, contact Marc Guerin [director of member education] at 416-943-4601 or mguerin@mfda.ca to schedule a meeting,” the document states.
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