Susan Silma: An insider’s perspective of CRM2

April 04, 2016 / Mackenzie Investments // Posted May 27, 2016

This week, we are happy to introduce our next subject matter expert, Susan Silma, co-founder of CRM2 Navigator. Susan has had a leading role in developing and launching CRM2, as well as changes to Point of Sale (POS). Let’s kick things off with Susan explaining where the inspiration for CRM2 came from and her thoughts about the changes to the industry:

"I’m a lawyer by training, but I was a regulator at the Ontario Securities Commission (OSC) for almost a decade. While I was in the industry, it became clear that the regulatory documents that lawyers prepare were not serving investors as they were intended to. As a regulator, I made it my objective to clarify and simplify the information communicated to investors and make it more meaningful.

When I think back to prospectuses that investors used to receive, I remember that they were very long and confusing. The information investors really cared about was nowhere to be found. We took an entirely different approach with Fund Facts, focusing on the issues we thought investors should know about and describing them in a way that was relevant to them. In our research, we found that about half of people are visual learners, so the Fund Facts document you see today includes charts and graphs.

Similarly, CRM2 was created out of a belief that things could be done better. Again, there’s a requirement that information be presented using charts and graphs, as well as words. This was done with the investor in mind and to make information more understandable for them.

Between the final phase of CRM2 and POS3, 2016 will be a challenging year for advisors. The industry has historically had a lot of change thrust upon it, but CRM2 is a different kind of regulatory initiative in that it is entirely visible to clients. CRM2 is really about value, but firms and advisors are struggling to incorporate value into its implementation.  This is the reason I created CRM2 Navigator – to provide advisors with tools and practical support that will prepare them to meet the challenges ahead, and also take advantage of this unique opportunity to strengthen client relationships and the trust between advisors and clients."

An excellent run-down on CRM2 regulation from an insider’s perspective. In her next post, Susan will outline some of the challenges advisors may expect in the final phase of CRM2, as well as some solutions.