BC investors weigh in on CRM2

The latest research findings reflect a positive reaction to the measure

BC investors weigh in on CRM2
The findings from the second part of the British Columbia Securities Commission’s (BCSC) Investor Readiness for Better Investing, a three-part study conducted by Innovative Research Group in March, have been published. The key insights gleaned from 500 respondents indicate that investors in the province are finding the new reports useful.

More than half of the investors polled (62%) said they found the new CRM2 fee reports easy to understand. A slightly higher percentage (67%) said the reports provided the information needed for them to understand the fees associated with their investments.

The reports also positively affected investor awareness of the fees they pay, making them more knowledgeable about fees. The respondents whose portfolios are less than $50,000 were much more likely to agree that fees can be negotiable (47%) compared to before they started receiving their CRM2 fee reports (32%). The same respondents became more likely to agree that similar financial products can have different fees (71%) than they were before they got the reports (49%).

The survey also examined the levels of trust and communication between BC investors and their advisors. Based on the findings, investors trust their advisors just as much now that they’re getting the CRM2 reports as they did before.

The latest BCSC results mirror previous research, which indicated that good advisors clearly establish their clients’ roles and responsibilities as well as encourage clients to stay involved with their investments. The latest findings show almost half of the respondents (48%) spoke with their investment advisor about CRM2 before they got the new fee reports; about a third (34%) said they had the discussions after receiving the reports.

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