Ontario’s government has approved the total cost reporting rule, which will enhance segregated funds’ disclosure of costs and performance.
The Financial Services Regulatory Authority of Ontario (FSRA) announced that the provincial finance minister has formally approved the rules that aim to harmonize the reporting requirements for seg funds and investment funds, in order to give investors enhanced disclosure of the costs of investing and the performance of their funds in annual reports.
The initiative represents the next iteration of the Canadian Securities Administrators’ Client Relationship Model (CRM2) reforms, which further expands investment funds’ disclosure demands — by including costs charged by fund managers alongside dealer costs — and now requires similar disclosure for seg funds too.
While it’s expected that investors will start receiving annual reports in 2027 for the year ended Dec. 31, 2026 — FSRA noted that the rule will take effect once its rulemaking authority for seg funds is proclaimed into force.
“FSRA will confirm the effective date in a follow-up announcement,” it said.
The securities sector’s new reporting requirements are slated to take effect on the same timeline, with investors to receive reports in 2027.
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