Fee disclosure rules aren’t making a difference

Investors must be sure to ask advisors pointed questions

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From the November 2015 issue of the magazine.

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Think new fee disclosure rules requiring advisors to be upfront with their clients about fees and portfolio performance are making a difference? Before you answer that, consider the following survey findings from a new J.D. Power study that canvassed 4,800 people who were using advice-based investment services from Canadian financial institutions:

fee disclosure


Effective July 2016, ongoing regulatory initiatives known as the Client Relationship Model-Phase 2 (or CRM2) will legally require all advisors to provide reports detailing account performance and all fees and other charges (including embedded commissions). But in the meantime, it still clearly pays to ask lots of questions.

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