The Federation, in partnership with various trade associations and industry particpants, is making strides towards Total Cost Reporting. All stakeholders are working diligently to ensure a smooth transition. This CSA initiative aims to enhance cost transparency for investors with a target implementation date of January 1, 2026.
October 21, 2024 The newest Industry TCR Guideline is version 11
Executive summary of the changes are:
- Clarification and definition of “Market Value”;
- Clarification that a security must be held for at least one day for Dealer and PM firms to calculate the daily fund expenses;
- Clarification that Dealer and PM firms should keep the daily value of the fund expenses calculation at 10 decimal points and only round it up to 2 decimal points once at year-end for the aggregate amount to be reported to the client;
- Various insurance/segregated funds clarifications and updates.
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February 26, 2024 Following a series of industry meetings and industry/CSA meetings led by the IIAC and NBIN, the industry associations and firms agree upon a guidance document for operational implementation of Total Cost Reporting:
June 12, 2023 Canadian financial regulators announce establishment of total cost reporting implementation committee
April 28, 2023 from AUM Law: On April 20, 2023, the securities and insurance regulators announced final changes to total cost reporting (
TCR) disclosure for investment funds and individual segregated fund contracts. The changes for the securities sector are through amendments to National Instrument 31-103
Registration Requirements, Exemptions and Ongoing Registrant Obligations and changes to the related Companion Policy (the
Amendments
).
Three more Sakura Seasons, then Total Cost Reporting will be Required for the Year Ending December 31, 2026
April 20, 2023 CSA and CCIR are adopting enhanced cost disclosure reporting requirements for investment funds and new cost and performance reporting guidance for individual variable insurance contracts or IVICs (referred to here as Segregated Fund Contracts), as described below (collectively, the Total Cost Reporting Enhancements or TCR Enhancements).
CSA AND CCIR NOTICE OF PUBLICATION
July 27, 2022 Federation submits comment letter
Total Cost Reporting for Investment Funds and Segregated Funds
April 28, 2022 CSA and CCIR publish Total Cost Reporting
CSA and CCIR Joint Notice and Request for Comment