Transparency in Fees: Client Relationship Model (CRM2)

Posted in RRSP, Investments, Expertise

The Canadian government recently announced new legislation concerning the transparency of fees charged on investment accounts – referred to as CRM2.

We have always prided ourselves on our simple and transparent fee structure as it is important for investors to understand what they are paying for. This has not always been the case for the financial industry. Not anymore.

The Canadian Revenue Agency (CRA) has introduced new reporting rules effective January 1st, 2017. This new government policy is often referred to as CRM (Client Relationship Model) and the most recent model which details the transparency on fees is referred to as CRM2.

We welcome these changes in fee reporting. These changes will allow investors to view the costs of different financial advice and then compare their costs versus the returns for any given investment strategy.

We believe the investing public will be surprised by the level of fees that, for instance, mutual funds have charged over the years. This information will now be easy to assess based on the new transparency laws. 

Rates of return will also become more transparent and will be detailed on your account statements provided by us. The combination of transparent fees and accurate reporting of financial rates of return are welcomed by the Campbell Lee & Ross team and will provide a level playing field for investors when choosing an investment strategy and portfolio manager.

For a full explanation of our fees and investment management process, please contact us.