CHALLENGE
In 2016, Canadian regulators introduced CRM2, which is similar to the current Regulation Best Interest (Reg BI) requirements in its intent.
Much like Reg BI now, CRM2 posed a massive compliance challenge for firms. They had to develop and deliver reporting with new data, increased transparency, and greater disclosure for regulators and investors within a strict deadline.
A large Canadian carrying broker for 50+ wealth management firms had to provide white label versions of Annual Fee and Performance Reports.
A complex problem given the short time to market, customization requests of their partners, and data management challenges.
SOLUTION
PureFacts developed a fully compliant, white label CRM2 reporting solution for the firm’s partners.
The benefits:
Flexible - Firms configured multiple aspects of reports to meet their needs (content, design elements, wording, and disclaimers).
Customizable - Additional import logic supported new data format for CRM2 specifications.
Client-focused - Design and testing process produced reports that were client-friendly and easy to understand.
RESULTS
Client met the compliance deadline for all their partner firms.
Research with advisors and clients showed their Fee and Performance Reports were well received.
CRM2 reports were visually appealing, provided new transparency, and the information was easy to digest.
Effective use of colour, charts, wording and explanatory notes increased clarity and comprehension of the new information.
Client received positive feedback from their partner firms that they’d met the regulators’ goals of enhanced investor comprehension.
