What you need to know about CRM2 at B2B Bank Dealer Services

What is Client Relationship Model, Phase 2 (CRM2)

CRM2 is a regulatory initiative implemented between 2014-2016 to help clients better understand the fees and performance of their investments and compensation associated with financial advice.

Advisor Benefits

With clients having access to fee and performance information for their investments, advisors can have an open conversation about fees and performance while demonstrating the value of having a financial advisor.

Client Benefits

The implementation of CRM2 provides clients access to more information about their investments and the financial planning process. Through discussions with their advisor, clients can gain a better understanding of the cost of advice, fees and investment performance, and the role of their advisor.

CRM2 and B2B Bank Dealer Services

As a result of CRM2 requirements, B2B Bank Dealer Services enhanced client reporting for transparency and compliance. The changes were phased-in over a three-year period between 2014-2016.

Mouse over the image below for more information about timeline deliverables

Pre-trade disclosure:

Any charges, fees, and other costs must be disclosed prior to any transaction.

Trade confirmation for debt securities:

Post-trade disclosure for debt security transactions must include, in writing, the annual yield as well as the total dollar compensation.

Enhanced client statements:

Dealers were required to provide enhanced account statements to clients that disclose market value, the cost of each investment, position costs of investments, which investments carry a deferred sales charge (DSC) and whether an investment is covered by an investor protection fund.

Annual charges and compensation reports:

Report will outline how much clients have paid to their dealer, to B2B Bank Dealer Services, and to third parties (e.g. fund manufacturers) for the services they have received.

Annual investment performance reports:

Provide client’s a better understanding of the annual performance of their account as it will include details of withdrawals and deposits made to the client’s account over the past year and since inception. In addition, it will include the annual and cumulative changes in the market value of the investments in the account.

¹View a sample of the Enhanced account statement
²View a copy of the Charges and Compensation Report
³View a copy of the Performance Report

For more information, contact your National Distribution Director.

The information on this web page is intended only as a high-level overview and is provided for information purposes only. It cannot be relied on to ensure compliance with CRM2 requirements. Consult your dealer for more information.