How the trader is always one step ahead when it comes to CFRs


    “That was not the intention of the CSA – to reduce product sales and access to products,” he said, noting that Worldsource did not. “The intention of the CSA was to put customers essentially on par with advisors in terms of access to information and understanding of the products they are recommended to use.”

    Now the biggest challenge for dealers is to install the technology that will meet the heightened suitability requirements, which Rizi says will have “the greatest long-term impact on consultant practice just because it requires a deeper immersion into the client’s circumstances than before” .

    While the industry has traditionally examined clients’ risk tolerance, the new reforms require advisors to create a risk profile that must also include client’s risk tolerance in order to assess suitability.

    “Our advisors have always looked at suitability,” Morfesis said, noting that Worldsource has long provided its advisors with an investor questionnaire, but is now helping them assess risk tolerance, although many advisors who have been financial planners have done so informally . “So it’s not a new concept for us and our consultants. We were 80% there. The only adjustment we have to make now is the capacity capture. We therefore have to work closely with our provider to adapt our systems accordingly. “

    Morfesis said Worldsource is a little ahead of the curve, as likely most traders are. The roll-out was successful, but recognized the importance of the reforms, “so we lowered our heads and worked on it.”


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