Wealth firm satisfies POS requirements

For the last five years, InvestorCOM has been working with one of Canada’s largest independent integrated wealth management firms to satisfy the POS regulation of pre-sale delivery for mutual fund Fund Facts and, soon to be, ETF Facts.

Regulatory pressure mandated significant change for the entire industry, resulting in POS regulation of pre-sale delivery of mutual fund Fund Facts, ensuring investors were armed with the necessary information to make appropriate investment decisions. In response, we created a solution to address the following challenges:

1. The POS regulation required delivery of a specific Fund Facts document for every mutual fund, per series and by language. This resulted in there being 100,000+ legal documents to choose from, all updated by fund managers and filed with regulators annually, or whenever a material change to the underlying mutual fund was required.
2. The industry was accustomed to using traditional, print-based communications to meet compliance and regulatory disclosure standards. Therefore, investment dealers and their solutions providers were not positioned to address the new POS regulation. Given the new standard of pre-sale delivery of documents, it was vital for the industry to have an electronic delivery solution to offer immediate responses via a cost-effective delivery channel.
3. The POS regulation presented a new challenge for the wealth management industry, resulting in increased compliance costs for dealers.

The solution leveraged the www.InvestorPOS.com repository, which contains the universe of mutual fund Fund Facts and ETF Facts documents from Canada’s 150+ fund managers. InvestorCOM successfully implemented our POS solution in less than six weeks.

InvestorCOM provided the client with a Fund Facts delivery solution that met their three key objectives: cost effective, minimal IT involvement, and a quick and easy-to-use platform for advisors and assistants.

Today, InvestorPOS contains the universe of all Canadian mutual fund managers’ Fund Facts documents and ETF Facts – 100,000+ documents from 150 managers. InvestorCOM continues to enhance the solution in response to user requests and enhancement opportunities. The solution was designed to not only improve the sales process, but also increase the electronic adoption of compliance documents.

InvestorCOM’s top five dealer clients represent 20,000 financial advisors, approximately 20% of all the financial advisors in Canada. Quickly moving from a 0% market share to a 20% market share has been possible because of the InvestorPOS solution being built, hosted and readily configured for dealers in under 30 days.

89% Fund Facts Are e-delivered

$45 Billion + AUA

$1.00 Cost Savings Per Delivery

239,000 Fund Facts Delivered

Wealth Management MFDA /IIROC Dealer

• Industry accustomed to traditional print-based communications

• Not positioned to to address the new POS regulation

• Cost challenges

• Cost effective, quick and easy-to-use an minimal IT involvement

• InvestorPOS database of all Canadian mutual fund Fund Facts (100,000 documents from
  150 managers)

• Improve sales process and increase electronic adoption of compliance documents

• Approximately 239,000 Fund Facts delivered for client

• 89% of Fund Facts delivered digitally

• Significant reduction of cost due to e-migration

• 9.3 million Fund Facts across all InvestorCOM clients