Performance Reporting & Cost Disclosure
The mutual funds industry supports recent regulatory initiatives that provide investors with important information before and after they purchase their investments.
Members of the industry are working together and collaborating with regulators to implement major changes to the information that investors receive through Fund Facts, before clients purchase a mutual fund, and also through CRM2.
Once CRM2 is fully implemented (which, in most cases, will be in the first quarter of 2017), investors will know, in dollar amounts, all of the costs associated with their accounts. On the performance side, they’ll see how well their investments have performed in dollar terms and their percentage rate of return over several time periods.
When it is fully up and running, CRM2 is expected to strengthen investors’ understanding of their investments and their confidence to make sound decisions.
IFIC is encouraging its members, and the industry generally, to adopt consistent investor-friendly language in their all their materials. IFIC has created an inventory of plain language materials that can be shared broadly to help advisors inform their clients.
We continue to work closely with our members and regulators on all aspects of implementation.