CRM2 is coming down the pipes this year - the important part where advisors are required to disclose their fees.
I predict the following potential industry fallout/changes:
1) Mad rush out of traditional mutual funds over to low cost mutual funds.
2) substantial increase in flat fee based financial planning, decrease in mutual fund advisors.
3) increase in robo-advisors. There's been a number launch this year (and I'm sniffing around if I want to get involved in the launch of one next year).
4) seg funds, I think the jury's out. If consumers get completely up in arms over fees, seg funds could take a huge hit. If not, a lot of advisors will start selling them instead of mutual funds because there's no disclosure requirements with seg funds. Right now I see advisors actively going both ways - some advisors are ramping up seg fund sales, others are exiting the investment side of their business entirely. Counting on consumers not really doing much, probably an increase in seg funds.
Thoughts, predictions?
I predict the following potential industry fallout/changes:
1) Mad rush out of traditional mutual funds over to low cost mutual funds.
2) substantial increase in flat fee based financial planning, decrease in mutual fund advisors.
3) increase in robo-advisors. There's been a number launch this year (and I'm sniffing around if I want to get involved in the launch of one next year).
4) seg funds, I think the jury's out. If consumers get completely up in arms over fees, seg funds could take a huge hit. If not, a lot of advisors will start selling them instead of mutual funds because there's no disclosure requirements with seg funds. Right now I see advisors actively going both ways - some advisors are ramping up seg fund sales, others are exiting the investment side of their business entirely. Counting on consumers not really doing much, probably an increase in seg funds.
Thoughts, predictions?
(Canada) CRA2 impact on the industry?