Advisors among the four distribution channels differ in how they expect to be affected by the implementation of CRM2 regulatory reforms.
Slideshow: Advisors forecast the impact of CRM2 on their businessesSlideshow
The majority of advisors surveyed for Investment Executive’s 2015 Report Card series don’t expect their businesses to be affected by the implementation of CRM2 reforms. Specifically, 26.2% say the regulatory regime will have no impact at all and 31.4% say it’ll be marginal. Meanwhile, 24.5% expect CRM2 to affect their businesses somewhat while 12.8% expect CRM2 to impact their businesses significantly and 5.1% expect it to shakeup their practices completely.
The greatest percentage of advisors (64.5%) who expect no impact or a marginal impact from the implementation of CRM2 reforms ply their trade at Canada’s brokerages. In turn, only 35.5% of advisors with brokerage firms expect the regulatory regime to affect their businesses in some way.
In contrast, 45.7% of advisors who work with Canada’s mutual fund and full-service dealers expect CRM2 to have some sort of impact on their businesses. Conversely, 54.2% among advisors with dealer firms expect little or no impact from the implementation of the regulatory regime and its new reporting requirements.
Banks & CUs
Advisors with Canada’s banks and credit unions are the closest to the overall industry average, as 56.8% expect little to no impact from the introduction of the new regulatory requirements. Meanwhile, 43.2% say they do anticipate CRM2 to have an effect — although the majority expects only somewhat of an impact.
Insurance sales agencies
These advisors are the closest to being split down the middle when asked about the effect that the introduction of CRM2 is expected to have on their businesses. On the one hand, 46.7% of advisors say the new regulatory regime will have an impact on their practices while 53.3% say that it won’t.