If it ain’t broke, don’t fix it, suggests one Ontario advisor.
“Why are we trying to fix a system that simply isn’t broken?” asks Brian Shumak, an advisor based in Concord, Ont. “I think if you looked at the percentage of problems (in this industry) compared to other industries, our percentage of problems is probably much lower.”
His question comes just as IIAC releases its most recent president’s letter – Taking on the Challenge of Implementing CRM2.
IIAC’s President Ian Russell warns that small firms risk being left in the dust, identifying the adherence to tight deadlines and consistency of rules as the major challenges to overcome as July 15, 2014 - the first CRM2 deadline – creeps up. Other CRM2 requirements including rules on portfolio performance, reporting, and compensation and fee disclosure will be phased in over the next two years, in 2015 and 2016.
“It will be a challenge for the industry to complete the CRM2 rule implementation process within the defined timeframe,” Russell writes. “The individual firms, in turn, will invest substantial resources to ensure compliance with the complex rule requirements. It will be more difficult for the smaller firms to keep pace with the workload.”
Russell speaks specifically to changes that need to be made to core systems and various client-facing documents – such as trade confirmations, new monthly and quarterly clients statements and revamped annual reports – required to comply with mandated performance reporting and disclosure rules.
Shumak believes that these new rules and regulations only apply to a few bad apples giving an industry, filled mainly with abiding professionals, a bad rap. (continued)