Personal Representative (CSRT)
A Personal Representative in the context of the Canadian Securities Regulators' (CSRT) Client Relationship Model (CRM) and CRM2 regulations refers to an individual designated by a registered firm to be the primary point of contact for a particular client. This representative is responsible for managing the client's account, providing investment advice (if licensed to do so), and ensuring the client receives appropriate service and information.
The designation of a Personal Representative is a key component of the CRM and CRM2 rules, which aim to enhance transparency and accountability in the client-registrant relationship. By assigning a specific individual to a client, the regulations seek to foster stronger relationships, improve communication, and ultimately lead to better client outcomes.
Key responsibilities of a Personal Representative may include:
- Knowing the Client (KYC): Understanding the client's investment objectives, risk tolerance, financial situation, and investment knowledge.
- Suitability Assessment: Ensuring that any investment recommendations or transactions are suitable for the client, based on their KYC information.
- Communication: Regularly communicating with the client, providing updates on their account, and responding to inquiries in a timely manner.
- Account Management: Overseeing the client's account, ensuring that it is managed in accordance with the client's instructions and the firm's policies.
- Conflict of Interest Disclosure: Disclosing any potential conflicts of interest that may arise in the course of managing the client's account.
- Complaint Handling: Addressing any complaints or concerns raised by the client.
The qualifications and licensing requirements for a Personal Representative vary depending on the type of services they provide and the products they recommend. They may be required to hold specific securities licenses, such as the Investment Representative (IR) license or the Registered Representative (RR) license.
The CRM and CRM2 regulations emphasize the importance of providing clients with clear and understandable information about their Personal Representative, including their name, contact information, and the services they are authorized to provide. This allows clients to easily identify their primary contact and ensure they are receiving appropriate advice and service.