Enhanced Transparency: Preparing For Total Cost Reporting Regulatory Requirements
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May 2025
New Canadian regulatory requirements aimed at enhancing fee transparency in investment funds will be impacting Canadian investment fund managers, specifically asset managers and insurers. These approved regulations will take effect January 1, 2026, with delivery of the Annual Report on Costs & Compensation that will incorporate TCR enhancements for the year ending December 31, 2026. Total Cost Reporting (TCR) information will be included on investor statements starting in 2027.
The Canadian Securities Administrators and the Canadian Council of Insurance Regulators had announced in a joint notice the TCR regulation on April 20, 2023 as a CSA amendment to National Instrument (NI) 31-103. Once in effect, all investment embedded costs are to appear in investors’ annual reports on charges and compensation.
The TCR requirements are designed to improve transparency and investor awareness of total fees and costs paid by mutual fund and ETF investors, as well as segregated fund holders. This regulation is intended to make it easier for investors to see and understand the embedded fees that they pay on their investment funds.
For more information, read “Enhanced Transparency: Preparing for Total Cost Reporting Regulatory Requirements.”
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Contributors
Ronald C. Landry
Vice President, Head of Segment Solutions and Canadian ETF Services
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