​Most read: CRM 2 continues to spark controversy

Advisors have lots to say about the big changes underway in the industry.

​Most read: CRM 2 continues to spark controversy
The mainstream media has barely touched on the subject of CRM2. But that doesn’t mean advisors are quiet on the subject.

A post on wealthprofessional.ca yesterday drew a group of interesting comments from advisors annoyed with the onset of the so-called CRM2 regulations. Complaints range from the overwhelming amount of information to be dumped on clients to the lack of communication on the part of regulators and professional bodies.  

“When I bring it up, people are like, ‘We've known and trusted you for 17 years, why all this now?’” wondered one advisor.

Going on, the advisor had a sharp, wonderfully cynical take on why it is so many new regulations are being introduced now. The feeling among some advisors seems to be that the many good advisors are getting punished for the actions of a few bad apples.

“I suspect there is a core of whiners who didn't listen to their advisers. They bought high, sold to buy mortgage-backed crap, got a DSC fee because they changed their strategy from long-term to short-term, then complained to the regulators and head office, saying they weren't told about the fees. Head office pays a complaint fee to keep 'em happy. The good advisors continue doing what they're told. The bad advisors go sell cell phone plans and hemp investments," says the advisor. 

Other advisors seem disappointed that more hasn’t been done to communicate the ins-and-outs of CRM2. “I work at an IIROC member firm…There's so much being thrown at us all at once that it's virtually impossible to know what exactly is encompassed in CRM2. If they can't even effectively communicate it with industry participants, it's no wonder they haven't effectively communicate it with the public,” said one.  

Another advisor makes the point that it is the job of the advisor to sort through the mounds of information generated in the financial industry so that the client doesn’t have to. That is, the very point of an advisor is to sort through all the stuff about to be dumped on clients. “[They] don't have time to read, study and select funds from the thousands available. The clients’ only hope is a good, trusted advisor to guide and protect them from mechanical marketing procures and to get answers when questions arise based on the timely decisions the advisor made in the past.”

Do the complaints ring true in your practice? Have your say at wealthprofessional.ca.