The Investment Funds Institute of Canada (IFIC) has produced a new checklist aimed at helping dealers prepare for Client Relationship Model Phase 2 (CRM2) rules coming into effect in 2015.

The industry trade group Wednesday released Dealer Checklist: CRM2 2015 Requirements, which spells out the changes that must be incorporated into account statements by the end of the year as part of the transition to CRM2 disclosure requirements.

These measures were initially slated to take effect in July, but the Canadian Securities Administrators (CSA) have given firms until the end of the year to get into compliance.

The checklist, which was prepared with help from the Mutual Fund Dealers Association of Canada (MFDA), spells out the required changes to account statements; and, it distinguishes between the elements of these statements that must use specific language required by regulators, and those that can utilize plain language. For the areas where plain language is allowed, the checklist suggests wording that will ensure compliance with the CRM2 rules and regulators’ expectations.

The checklist sets out that, under CRM2, account statements will have to: provide the book cost, or original cost, of each security, and a definition of that cost; report the market value of each security based on international accounting principles; provide an opening balance for the account; disclose whether a fund is subject to a deferred sales charge (DSC); indicate whether a product is covered by an investor protection fund; and, spell out the owner of each investment, and a description of how it is held (whether in client or nominee name).

IFIC says that the checklist represents a ‘one stop tool’ that consolidates all of the forthcoming 2015 requirements under CRM2 in one place. “We are making the checklist available to all dealers – members and non-members of IFIC – to help the industry meet both the letter and spirit of the rules,” says IFIC president and CEO, Joanne De Laurentiis. “We hope that all dealers will adopt the plain language text and recommended approaches the new checklist provides.”

The trade group says that it will also be producing materials to help dealers comply with the requirements that are due to take effect in 2016, including enhanced investment cost and performance reporting requirements.

“Recent discussion of CRM2 has centred on the 2016 changes, but significant improvements to client account statements come into force this year and we wanted to help make sure dealers were ready for them,” De Laurentiis adds.