Full Cost Disclosure
CRM2 was a regulatory initiative designed to provide investors with greater visibility into investment performance and costs. It brought with it a systemic changes that were implemented which included pre-trade disclosure, verbal discussions on fees and other costs, and written post-trade disclosure for debt security transactions including the annual yield as well as the total dollar compensation. The regulation mandated fund companies enhance their clients’ account statements to show information such as market value of fund, opening balance, and funds carrying Deferred Sales Charge (DSC).
To ensure that Unitrax® was compliant with CRM2, we worked very closely with our clients to identify functionalities that are relevant to their business process needs.
With the new proposed Full Cost Disclosure (CRM3 and CCIR IVIC Recommendations) we are again working with our Insurance and Securities clients to ensure that their needs are met and that they can fully comply with the challenges that the new Full Cost Disclosure requirements bring.
LTI Canada’s compliance team also participated in many industry group discussions around Full Cost Disclosure including IFIC and fundserv, as well as holds regular LTI Client meetings with all our clients to discuss.
Unitrax® has continuously been enhanced to ensure it complies on an annual basis with the timelines set out by the CRA and the Department of Finance (DOF) since the inception of FATCA in Canada. The platform automatically recognizes the line of business being administered and reports the correct information to the CRA through XML filing. Unitrax® has in-built functionalities to generate reports on configurable amounts, account types, and investor types, and also keeps track of changes in circumstances.
The Organization for Economic Co-operation and Development (OECD) developed the Common Reporting Standard (CRS) to combat global tax evasion and improve tax compliance. The CRS became effective in Canada on July 1, 2017, requiring financial institutions to provide customer information to the CRA that includes account holder’s personal details, TIN, account details, and payments credited to the account for account holders that met the CRS residence criteria.
LTI Canada has incorporated various changes in Unitrax® across functions like due diligence, administration, and reporting to comply with the Part XIX of the Income Tax Act regarding the CRS.
Our compliance team actively participates in industry forums to discuss the implications of the CRS and best practices for superior compliance.
Investment Vehicles Supported
Unitrax® supports multiple investment vehicle types: Segregated Funds, Mutual Funds, Guaranteed Investment Certificates (GIC), Daily Interest Investments (DII), Payout Annuities, Guaranteed Withdrawal Benefits (GWB), Guaranteed Investment Accounts (GIA), Pooled Funds, Limited Partnership, Linked Notes, Daily Interest, as an example. Each of these investment vehicles have built in configuration rules to allow you to determine the types of funds and the guidelines to be configured.
The offering encompasses modules that strictly adhere to the different legislative, regulatory and business rules for each product while providing added flexibility that allows clients to issue customized plans for their market.