Susan Silma's CRM2 Highlight Reel

April 25, 2016/ Mackenzie Investments

It’s hard to believe that we are nearing the end of our series with CRM2 Navigator’s Susan Silma. We’ve covered a number of themes ranging from the intention behind CRM2 to challenges and solutions for advisors and investors. If you happened to miss any of Susan’s posts, here are some of the highlights:

Where did the need for CRM2 come from?
Susan observed firsthand that the industry’s regulatory documents were not serving investors as they were intended. Long and confusing, these documents needed to be clarified, simplified and more relevant to investors.

Challenges for Advisors

  • The CRM2 information that investors receive will be new or presented in a new way, raising some investors’ concerns:
  • Unfamiliar terminology may create some confusion.
  • Some fees, especially third party compensation, will be new to clients.
  • A value proposition that is either not well defined or well communicated.
  • The final phase of CRM2 and POS3 will be implemented in 2016, meaning there will be a number of changes for advisors to implement and explain to their clients in a short period of time.
  • Challenges for Investors
  • Half of investors believe they do not pay any fees, while many others are unsure.
  • Questions about the value of an advisor or dealer.
  • Instinct to compare performance to fees.
  • Poorly defined goals.
  • Tips
  • Pre-empt your clients’ concerns about fees, performance and value by speaking to them now.
  • Ensure that you have a value proposition that reflects your unique value and communicate it well.
  • Focusing on the numbers deemphasizes all other aspects of value.
  • Use the Fund Facts document to facilitate your CRM2 pre-trade cost disclosure conversation.
  • Help your clients articulate their goals and encourage them to compare performance to those goals.