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CRM2 2016 Phase II Requirements and Model Reports for Use by Advisors

CRM2 2016 Phase II

CRM2 aims to provide investors with transparency around timely, easy-to-understand, detailed information about the cost and performance of their investment funds. CRM2 will be phased in over a three-year period, from 2014 to 2016. The requirements apply to dealers and advisers in all categories of registration.


2016 -  2015 -  2014   


Report on Charges and Other Compensation:

Effective July 15, 2016, registered firms must annually provide investors with a summary of all charges incurred by the investors and all other compensation received by the registered firm that relates to investors' accounts, including:

  • Operating charges
  • Transaction charges
  • Trailing commissions
  • Debt security transactions

Performance Reporting:

Effective July 15, 2016, registered firms must provide investors annually with an annual investment performance report that covers deposits into, and withdrawals from, the client's account; the change in value of the account; and the percentage returns for the previous year; and the previous three, five and ten years.

The Performance Report must include:

  • Annualized total percentage return calculated net of charges using a money-weighted rate of return calculation method for the reporting periods of 1, 3, 5 and 10 years and the period since the inception of the account
  • Opening market value, deposits and withdrawals and change in market value
  • Market value methodology for a security, using a hierarchy of valuation methods that depend on the availability of relevant information

Preparing CRM2 Reports for Your Clients
PDF Download (857 KB)


Account Statements:

Effective July 15, 2015, investors must be provided with account statements every 3 months or monthly (if requested, or a transaction was effected) that include:

  • Cost of security positions calculated using "book cost" method or "original cost" method
  • Market value of securities determined in accordance with common methodology
  • All transactions carried out during the period
  • In addition to securities held in client name, securities held by the dealer/adviser in the account (e.g., nominee name securities)

Securities that are not held in client name include those which:

  • The registrant has trading authority
  • The registrant receives continuing payments tied to the securities (e.g., trailing commissions)
  • The security is issued by a scholarship plan, a mutual fund or labour-sponsored investment fund
  • An Additional Statement may be provided for securities not held in client name

IFIC also issued a companion guide to help dealers use the model reports effectively.  

2015 Dealer Checklist
PDF Download (263 KB)

2015 Model Report
PDF Download (735 KB)

IFIC’s CRM2 Model Reports
PDF Download (250 KB)


Cost Disclosure:

Effective July 15, 2014, dealers and advisers were required to provide investors with:

  • Pre-trade disclosure of all charges before purchasing or selling a security
  • Disclosure of the amount of compensation; or amount of commission paid to the registered firm; or if the registrant applied a mark-up or mark-down; or any service charge on debt securities transactions at the time of purchase or sale