Quebec independent advisors lead charge against CRM2

Quebec independent advisors lead charge against CRM2

Quebec independent advisors lead charge against CRM2

The association hasn’t been bashful in expressing its misgivings about the full implementation of CRM2 coming next year and set to transform the province’s current landscape.

"In order to eat steak, you must have teeth," states a PAFSA's press release on CRM2, implying that advisors will have nothing to chew with should the regulations move ahead unchanged. PAFSA, based in Quebec, defines its mission as defending the interests of independent advisors.

While CRM2 calls for advisors to provide full disclosure of all commissions, trailing commissions and fees generated, Vani believes that it will tie the hands of financial advisors.

“We shouldn't be forced to disclose anything, we are the only ones being compelled to do so,” he said. “These rules should apply to everyone. This approach is totally unfair since numerous financial institutions wouldn't have to disclose this information, furthermore their employees are often paid fixed salaries not to mention bonuses.”

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4 Comments
  • Tim Affolter 2015-03-26 2:25:31 PM
    I'm afraid PAFSA is right. The regulations are going to create anything BUT a level playing field. Consumers are going to be totally confused when they see the same investment names being sold at a bank or insurance company for "free" because only advisor comp is being disclosed, not the sum total dollar amount of the fees, both direcct and indirect (is: bond spreads,) clients are paying to both the dealer AND the manufacturing institution. In its present form, CRM2 will create a dog's breakfast of disclosure facts, ranging from fully disclosed and negotiated fees on institutional-style pools to apparently free options delivered by your friendly neighborhood bank. There will be no comparing the results. Our hope for true change in the industry is being exchanged for a witch hunt in which advisors are being singled out.
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  • Ken kivenko 2015-03-26 4:12:42 PM
    Crm2 is about fee disclosure and performance reporting. Only way it is bad for Reps is if fees too high or performance too low. Investors have every right to know the cost of advice and its benefit. Those who oppose this should leave the industry.
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  • larry elford 2015-04-08 8:07:17 PM
    I agree with Ken Kivenko, one of the better informed investment experts in Canada. However if the Professional Association of Financial Services Advisors (PAFSA) would remove the words "professional" and "advisors" from their name, they could probably be at least somewhat safe in terms of disclosure, or at very least protection from misrepresentation accusations.
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