CSA publishes research on impact of Client Relationship Model Amendments on industry and investor behaviour

Summary:

The Canadian Securities Administrators (CSA) has published two research reports examining the investment fund industry and investor behavior after the implementation of the Client Relationship Model Phase 2 (CRM2) Amendments in 2016. The reports found that the amendments, which require greater transparency about the cost and performance of client accounts, have led to improved industry behavior and investor outcomes. Specifically, the reports found a decline in average fees and an improvement in investment performance over the 2013-2020 study period. The findings suggest that disclosure-based regulations can be an effective tool in changing industry and investor behavior.