July 15, 2014

CRM2 Takes Effect Today; The IIAC Recognizes the Combined Efforts of Industry Participants and Regulators in Facing the Implementation Challenge Head-On

Following two years of CRM1 implementation, the first major implementation date for the second phase of Client Relationship Model (CRM) requirements – CRM2 – is upon us.

Beginning no later than today, dealers must provide the following to clients:

  • More comprehensive pre-trade charge disclosures;
  • Additional details regarding commissions on trade confirmations for debt securities; and
  • Explanations about how to use benchmarks to help assess account performance.

These rules, resulting from extensive communication between the industry’s firms, regulators and other stakeholders, are designed to balance greater transparency when dealing with clients with the already extensive CRM requirements to which IIROC dealers are subject.

The IIAC was instrumental in helping to lead the concerted effort to prepare the industry for CRM2 implementation. In all, scores of volunteers from integrated and many retail IIAC member firms took part in six CRM2 working groups, devoting thousands of hours toward the smooth and successful implementation of the new requirements, requiring changes to systems, policies, procedures, and documentation across the securities industry and their service and infrastructure providers.

As with any undertaking of this size and scale, there have been challenges. However, all stakeholders in the industry that have been focusing on CRM2 remain committed to addressing future issues in the same head-on fashion that will allow IIAC members to deliver affordable, accessible services to Canadians and Canada’s economy as a whole, all the while continuing to function effectively.

The IIAC would like to recognize the extensive efforts of industry participants and the regulators with whom they are working to ensure the successful implementation of CRM2.

The Summer 2014 issue of CRM2 Countdown, the IIAC’s CRM2 Newsletter, is available here.

Additional CRM2 resources are available to IIAC member firms by clicking here.