There is general support for expanding cost reporting for investment funds and other products, but there is still work to do before that can be accomplished, says a report by the Mutual Fund Dealers Association (MFDA).

In April of this year, the MFDA published a second discussion paper on expanding cost reporting to build on its 2015 initiatives. This second paper also provided results of the MFDA’s review of the charges and compensation reports of integrated members and identified costs incurred by investors not currently required to be reported.

CRM2 only looks at part of total

Commenters on the report expressed support for expanding cost reporting for investment funds and other products (including banking and insurance products), noting that CRM2 changes address only part of the total cost equation. They said that expanded cost reporting would enable investors to have a more complete understanding of investment returns relative to the costs associated with the investment.

Commenters encouraged the Canadian Securities Administrators to work with other regulators to establish more harmonized investment product disclosure, to achieve a more level playing field and to mitigate the risk of regulatory arbitrage.

Commenters also noted that expanding reporting for products other than investment funds might be more difficult to achieve due to issues associated with how such products are offered.