Mar. 10, 2026
The Canadian wealth management industry is entering a new era, one defined by greater transparency, deeper trust, and more meaningful advisor‑client relationships. At the centre of this evolution is Total Cost Reporting (TCR), a new disclosure standard that will change how investors understand the true cost of investing.
Introduced by Canadian securities regulators, TCR is designed to help investors gain clearer insight into the total cost of their investment products and advisor advice. The new requirements officially take effect on Dec. 31, 2026, so clients will begin seeing this enhanced disclosure on their 2026 annual statements distributed in January 2027.
For Canada Life, TCR is more than a regulatory milestone. It’s an opportunity to reinforce leadership in the wealth management space, strengthen advisor‑client relationships and continue enhancing trust through transparency.
What is Total Cost Reporting?
Total Cost Reporting builds on earlier disclosure enhancements introduced through Client Relationship Model 2 (CRM2). While CRM2 improved transparency around direct fees and compensation, TCR goes a step further by clearly identifying embedded investment costs – costs that have always existed but were not previously presented in a consolidated, client‑friendly way.
The objective of TCR is straightforward: To help investors better understand the full cost of owning their investments so they can make more informed decisions alongside their advisor.
By displaying costs in both dollar amounts and percentages, TCR makes investment expenses more tangible, comparable and meaningful within the context of long‑term financial planning.
What clients will see on their statements
Beginning with 2026 year-end reporting (delivered in early 2027), clients invested in mutual funds, ETFs and similar products will see a new disclosure on their Annual Report on Charges and Other Compensation (ARCC).
Fund Expense Ratio (FER)
The Fund Expense Ratio (FER) represents the total cost of operating an investment fund. It combines two existing components into a single, transparent figure:
- Management Expense Ratio (MER)
Covers the ongoing costs of managing and administering a fund, including professional portfolio management, operating expenses, record‑keeping, advisor trailing commissions (where applicable) and applicable taxes. - Trading Expense Ratio (TER)
Reflects the transaction costs incurred when buying and selling securities within the fund, such as brokerage commissions and other portfolio trading expenses.
Together, MER and TER provide a complete picture of the cost of managing and operating a fund – something investors have not previously seen clearly summarized in one place.
Fund managers are responsible for calculating and providing FER data to dealers, enabling consistent and accurate reporting across the industry. This information will then be included directly on client statements.
Why total cost reporting benefits clients
TCR is designed to give clients a clearer understanding of their investment portfolios by plainly outlining the costs associated with investing. With greater transparency, clients are better equipped to:
- Understand how their investments are structured
- See how costs relate to professional management and oversight
- Make informed decisions in partnership with their advisor
“Total Cost Reporting is another important step forward for our industry. It reinforces our shared commitment to ensuring clients understand what they’re paying for – and why. It also creates a valuable opportunity for advisors to engage clients in deeper, more meaningful conversations.” said Sam Febbraro, President & CEO, Canada Life Investment Management Ltd.
Demonstrating the value of advice
Importantly, TCR doesn’t introduce new fees – it simply makes existing investment costs more visible. This transparency creates a valuable opportunity for advisors to clearly demonstrate the value they provide.
By preparing clients for what they’ll see on their statements, advisors can enhance confidence and reinforce that the reporting has changed, not the underlying costs. Advisors can also help clients understand how fees support professional management, diversification and ongoing portfolio oversight.
With clearer cost information, advisors are well-positioned to highlight the research behind product selection, how portfolios align with client goals and risk tolerance and the role fund managers play in managing risk and navigating changing markets.
“Advisors are on the front line of our industry. They bring both product expertise and a deep understanding of their clients’ goals. Total Cost Reporting gives advisors the opportunity to clearly explain what investment costs cover and the value behind those services.” – Sam Febbraro, President & CEO, Canada Life Investment Management Ltd.
A clear path forward
We believe transparency is foundational to trust, and trust is essential to long‑term financial success. By embracing Total Cost Reporting as an opportunity rather than an obligation, Canada Life continues to demonstrate leadership in an evolving wealth landscape.
Total Cost Reporting represents more than a regulatory change. It’s a meaningful step toward a more transparent, client‑centric industry – one that supports informed decision‑making and stronger advisor‑client relationships.
For Canada Life and its advisors, TCR is an opportunity to lead with clarity, integrity, and confidence – today and into the future.
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