A wider lens of disclosure
Under the enhancements developed jointly by the CSA, the CCIR, the Canadian Insurance Services Regulatory Organizations (CISRO), and New Self-Regulatory Organization of Canada (New SRO), clients will have to be provided with annual reports showing ongoing costs of owning mutual funds, ETFs, scholarship plans, and segregated funds.
The cost information has to be disclosed both as a percentage for each fund, as well as an aggregate amount in dollars paid during the statement period. For segregated fund contracts, the aggregate dollar amount should include fund expenses for all seg funds, costs of insurance guarantees, and all other expenses under the contract.
The enhancements to investment fund reporting include amendments to NI 31-103 and its companion policy, 31-103CP. Those securities amendments – which are relevant for all registered dealers, advisors and investment fund managers – are subject to ministerial approval in some jurisdictions. They’re set to take effect on January 1, 2026, with the first annual reports to investors covering the 12-month period ending on December 31 that year.
“We expect New SRO to amend its member rules, policies and guidance to be materially harmonized with the Securities Amendments,” the CSA and CCIR said in today’s notice.
Meanwhile, the enhancements for the insurance sector are codified in the Individual Variable Insurance Contract Ongoing Disclosure Guidance, which will apply to all insurers that offer segregated fund contracts to policyholders. The CCIR expects each of its member jurisdictions to adopt the framework by local guidance or, in certain jurisdictions, by regulation.