BCSC releases new videos highlighting changes to client reporting requirements

VANCOUVER, Sept. 13, 2016 The British Columbia Securities Commission (BCSC) has released five new videos to raise awareness about changes to how advisors must report to investors on the costs and performance of their investments, as well as the content of their accounts.

The changes to reporting requirements are part of an initiative called the Client Relationship Model (CRM2). Under these new securities laws, advisors must provide to their clients:

  • enhanced relationship disclosure information,
  • pre-trade disclosure of advisor fees and other charges,
  • expanded account statements,
  • annual reports on investment performance, and
  • annual reports on charges and compensation.

"Our research has shown that many investors are not asking important questions about their investments, such as what fees they pay to their advisor and how their investments are performing," says BCSC Executive Director Peter Brady. "The new CRM2 requirements will ensure that investors receive that information and are empowered to discuss fees and performance with their advisors."

The new videos, which are available on the BCSC website and investright.org, were created to help investors understand the new information they will receive from their advisor under CRM2.

The annual reports on investment performance and on charges and compensation were the last of a series of CRM2 requirements and came into effect in July 2016. Firms have until July 2017 to provide their clients with the new reports.

In the annual investment performance report, investors will receive details about their investments, including the deposits and withdrawals during the year and since the account was opened, the market value of their holdings, and a personal rate of return for their investments.

In the annual charges and compensation report, investors will receive details about the total amount paid to their advisor to manage their accounts and investments. This includes account operation charges, transaction fees for purchases and sales, and amounts mutual funds and other organizations pay to the firm as commissions and other charges.

About the British Columbia Securities Commission (www.bcsc.bc.ca)

The British Columbia Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:

  • A securities market that is fair and warrants public confidence
  • A dynamic and competitive securities industry that provides investment opportunities and access to capital

Learn how to protect yourself and become a more informed investor at www.investright.org

SOURCE British Columbia Securities Commission

For further information: Media Contact: Alison Walker, Media Relations, 604-899-6713; Public inquiries: 604-899-6854 or 1-800-373-6393 (toll free), inquiries@bcsc.bc.ca

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http://www.bcsc.bc.ca

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