Writing a Check

A new amendment under N1-31-103 of the Canadian Securities Administrators will include enhancements to account statements and client disclosure.

Investors can expect new cost disclosure that includes:

  • at account opening, what product and service costs they can expect to pay;
  • at the time of a transaction, the transaction cost and any deferred cost; and,
  • annually, a summary in dollar terms of what they were charged and any other fees paid to the firm, such as trailing commissions and commissions on trades.

Investors can expect a new annual investment performance report that includes:

  • how much they have contributed and what it is worth as of the report date;
  • deposits and withdrawals for the past year and since their account was opened; and,
  • percentage returns for their account over one, three, five and 10 years and since it was opened.

The amendments will take effect on July 15, 2013.

We at YOU FIRST / FundEX Investments welcome the news.  Transparency makes for better adviser client relationships. Clients will soon be able to see whether their bank or independent adviser is providing the level of Investment and financial planning advice that justifies the fee they earn. We look forward to gain much market share as a result!