MFDA releases CRM2 client guide

The Mutual Fund Dealers Association of Canada has issued an investor guide to help clients understand advisor reports related to new fee disclosures under the CRM2 regulations.

The investor guide provides sample reports created by the MFDA and a fee and charges glossary to help investors understand terminology related to fees and cost that they may see in compensation reports, the self-regulatory organization says in a release.

Read: Worried about conflicts of interest? IIROC and MFDA are watching

“This initiative is part of the MFDA’s commitment to provide plain-language materials to investors in order to assist them in understanding products, performance, cost and the advisory process,” Mark Gordon, MFDA chief executive, says in a statement.

He adds: “We created the Investor Guide to provide investors with key information on how they can use the new compensation and performance reports to better evaluate their investments, and the value of advice that they have received.”

MFDA also provides a brochure to investors to help them select an advisor and get the most from the service.

Also read:

CRM2 primer: Talk performance like a pro

Industry struggles with hurt feelings, debates principles at CSA roundtable

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.