A clearer view of investment costs
Investment reporting in Canada is evolving. Beginning in 2027, investors will start receiving more detailed information about the costs associated with their investment funds. These changes are commonly referred to as Total Cost Reporting, or CRM3.
The purpose of this update is to make investment costs more visible and easier to understand.
What is Total Cost Reporting?
Total Cost Reporting updates how ongoing investment fund costs are shown in annual reports. Instead of presenting a limited view of expenses, reports will now provide a more complete picture of the costs built into an investment fund.
These costs have always existed. What’s changing is how clearly they are disclosed.
When will this apply?
The updated reporting applies to costs incurred during the 2026 calendar year.
Investors can expect to see this expanded information in their annual cost and compensation reports issued in early 2027.
The timing may vary slightly depending on the investment provider.
What costs will be included?
Annual reports may now show fund-related expenses such as:
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Management Expense Ratio (MER) – the cost of managing and operating the investment fund
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Trading Expense Ratio (TER) – costs related to buying and selling securities within the fund
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Fund Expense Ratio (FER) – the combined total of fund-level expenses
These costs may be presented as percentages and as dollar amounts, helping investors see how expenses translate into actual dollars over the year.
Why this matters
Costs are one part of understanding how an investment performs over time. Clearer reporting allows investors to better see how expenses fit into the overall investment picture.
Cost alone should not determine investment decisions. Risk level, diversification, time horizon, tax considerations, and personal goals all play an important role.
Clear disclosure supports better questions and more informed discussions.
Putting costs in context
Total Cost Reporting is intended to improve transparency, not to guide investment choices.
A lower-cost investment is not automatically the right choice in every situation. What matters most is whether an investment aligns with an investor’s overall strategy and objectives.
Clear reporting helps support thoughtful review and informed decision-making.
Common questions
Does this create new fees?
No. Total Cost Reporting does not introduce new fees. It only changes how existing costs are shown.
Will investors pay more because of this change?
No. Costs are not increased. Only the disclosure format is different.
Is any action required?
No action is required. The updated reporting will appear automatically when reports are issued.
Differences in reporting format
While Total Cost Reporting follows a common regulatory framework, the way information is displayed may vary by investment provider. The goal across the industry is consistent: clearer and more complete cost disclosure.
The most important takeaway is that this change is about visibility, not new charges. When the new reports arrive, we are happy to walk through them together.
This content is provided for general informational purposes only. It is not intended to provide investment, tax, or legal advice, and should not be relied upon as such. Information is based on current regulatory guidance and may change over time. Reporting formats and timing may vary by investment provider.