Wealth Professional 3.01

Page 64


CRM2: The sheriff or just another suited-up outlaw? Montreal advisors the Bakish Brothers wonder whether CRM2 will really bring law and order to the financial industry

In 1881, after ‘cowboys’ robbed several stagecoaches in the town of Tombstone, Wyatt Earp was enlisted by his brother, Virgil, the town marshal, to help bring order to the small mining town. The result was the gunfight at the O.K. Corral. Today, following a deep financial crisis during which many clients complained of having their ‘stagecoaches’ robbed, the Canadian Securities Administration has stepped on the scene and enlisted the help of CRM2. CRM2 is the second stage of an industry-wide regulatory initiative requiring, among other things, greater transparency regarding fees for services provided and performance reporting on client statements. In other words, it’s an attempt to create an even playing field between representatives across the industry when clients ask two key questions: 1) “What did I make [returns]?” and 2) “What did it cost me [fees]?” One may wonder why it has taken the 62 | JANUARY 2015

62-63_Guest_column-SUBBED-Marla.indd 62

29/01/2015 3:28:26 AM