The Canadian Securities Administrators (CSA) have uploaded a series videos to Youtube, telling investors how to find out what fees they are paying for their investments and explaining how to avoid "unpleasant surprises" when dealing with advisors.
The CSA have created four videos to introduce the disclosure requirements that are part of the second phase of the Client Relationship Model (CRM2). These new rules stipulate that clients must receive both pre-trade disclosure of fees and other charges, as well as detailed annual reports on both investment performance and advisor compensation.
The four videos are:
- Know what to Expect from your Registered Investment Adviser
- Know What You Pay When You Buy Or Sell An Investment
- Know Your Investment Account Performance
- Know The Cost Of Your Registered Investment Adviser
Each video provides a brief overview of a change and includes tips for investors to consider when speaking with an advisor. For example, the first video explains that advisors are obligated to disclose all the important aspects of their relationship with the client, including any conflicts of interest as well as the fees and charges the client will pay for operating the account.
"Most of this information must be provided to you in writing before the advisor makes any investments on your behalf," says the video. "Also, your advisor's firm must provide you with written notice of any significant change to this information. Knowing what to expect from your advisor can help you build a better relationship with them and avoid unpleasant surprises or disagreements in the future."
The four videos are available on the CSA's YouTube channel.
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