Jason talks to Dave Carr-Pries, Vice President – consulting services at InvestorCom. Today they are going to talk about how the implementation of CFR and Reg BI has basically panned out in the last year and where the successes and challenges are?
Episode Highlights
- 1.31: InvestorCom is a fintech company, they provide software really focusing on helping the industry make better financial decisions, and with that means their focus is on compliance solutions that aim to make being compliant as intuitive as possible and removing friction and barriers from advisors of dealers.
- 2.58: Without an advisor or an investor doing anything, when fund companies change their products or things change about their products, suddenly a portfolio may become unsuitable, says Dave.
- 7.23: Dave discusses what is the kind of data points for the elements that you look for significant change.
- 09.30: People like complaining about work and it's like this is not hard. You need to have investment thesis for how you actually manage portfolios and do it consistently and then you just have to look for changes that are pertinent to that, says Jason.
- 14.02: Dave shares how they filter and pass data down to people and give them what to look at.
- 15.30: When an advisor is presented with kind of a relative comparison, things do move slowly and we are starting to see a trend and making recommendations of products that stack up, says Dave.
- 17.40: Jason discusses how it is not hard from the advisory perspective to have a documented process.
- 20.01: Anyone who just basically buys nothing, but passive indexes have an easy time says Jason.
- 22.01: As an advisor professional judgment is about identifying red flags and if there are any red flag be prepared to document your justification relative to those flags.
- 29.30: We put out a process, our documentations are in place, this is really called practice management 101, says Dave.
- 31.02: To not think through the advisor experience and how to make this a manageable experience is a gross failure of management like that, says Dave.
3 Key Points
- Jason and Dave talk about the big changes in regulations both in Canada and US and InvestorCom dealt with the changes.
- Dave explains how they have taken self-monitor solution that builds the industry audit trail and added advisor alerts.
- Dave shares that they are working on the product recommendation side and how to do that product comparison or consideration of primitives.
Tweetable Quotes
- "People probably made decisions that weren't good or interpretations that the regulator won't agree to." - Jason
- "This kind of change management or change monitoring process mean thanks to the regulator's kind of a new thing. So, no one really knows what that magnitude is." - Dave
- "My concern is people for shooting an arrow and then drawing the bullseye around it." – Jason
Resources Mentioned
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