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The Client Relationship Model

The Canadian securities industry and the bodies that regulate it have been collaborating closely together for several years to improve and standardize the way information is communicated to clients in order to keep them better informed.  All participants agree that informed clients make better decisions and ultimately have better experiences.

This collaborative effort has resulted in a new standard: the Client Relationship Model (CRM). Its second phase (CRM2) has been rolled out progressively since 2014 and will continue until 2016.

Changes being implemented as of 2015

Some changes related to CRM2 took effect in November 2015. Minor changes were made to the Important Statement Information section of your Portfolio Statement in order to include a detailed book value definition as required by Regulators.  

In the Asset details section of each of your accounts, we also have three new indicators to inform you of particular situations regarding certain positions. These indicators are described below. If these situations arise, an annotation referring to the applicable definition will be displayed next to the affected value.

Possible indicators :

  1. Non determinable price: This notifies you that the current market price for a particular security was not available at the time the statement was produced.  In the future, should this market value become available, it will replace the indicator.
  2. Deferred sales charge: This indicates that a particular security may be subject to deferred sales charges (ex. Deferred sales charge mutual funds). Depending on the number of years it is held, charges may be applied by the issuer when the security is sold.
  3. Book value at market value: This indicator signifies that we have either incomplete book value information or no book value at all for a particular security. We have therefore used its current market value in order to estimate all or part of its book value, as specified by Regulators. This situation can occur, for example, when we receive a transfer.
Note that it is always possible to change the book value by filling out form 27740.

More information about CRM2

If you would like more details on these regulations, you can consult both the IIROC website as well as the CSA website.

 

 

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