Canadian regulators form committee to implement total cost reporting enhancements
Canadian regulators form committee to implement total cost reporting enhancements | Insurance Business Canada
Insurance News
Canadian regulators form committee to implement total cost reporting enhancements
Changes impact life insurance agents
Insurance News
By
Mika Pangilinan
The Canadian Securities Administrators (CSA) and the Canadian Council of Insurance Regulators (CCIR) jointly announced the establishment of a new committee to oversee the implementation of total cost reporting (TCR) enhancements.
The committee aims to support industry stakeholders in implementing the changes to enhance cost reporting disclosure for investment funds and individual segregated fund contracts.
The TCR enhancements were published by CSA and CCIR on April 20 with the goal of enhancing transparency in disclosing total fees and costs to holders of investment funds and segregated funds. The changes will require both securities registrants and insurers to provide enhanced annual reports to their clients and policyholders beginning 2026.
By improving cost reporting disclosure, the TCR enhancements seek to provide investors and policyholders with a clearer understanding of the ongoing embedded costs associated with owning investment funds and individual segregated fund contracts, including management fees and trading expenses.
“This additional transparency will help investors ask their dealing representatives and life insurance agents the right questions and make better-informed decisions, which should ultimately result in better investing outcomes,” Magidson said.
The newly formed committee will support industry stakeholders through the transition period, which concludes on December 31, 2025. This will be done through the establishment of channels for participants to submit inquiries directly, as well as through industry associations.
The TCR enhancements were developed by CSA, CCIR, CIRO, and the Canadian Insurance Services Regulatory Organizations (CISRO). CIRO will also participate in the committee.
In a press release, both CSA and CCIR said they are looking forward to working directly with industry participants and stakeholders to assist them in implementing the initiative.
What are your thoughts on this story? Feel free to comment below.
Related Stories
Keep up with the latest news and events
Join our mailing list, it’s free!
