The Financial Services Regulatory Authority of Ontario (FSRA) announced June 9 that Ontario’s Minister of Finance approved the regulator’s total cost reporting rule on June 3, 2025. The rule requires insurers to provide consumers with enhanced annual statements that disclose total costs and investment performance – akin to statements issued in the securities industry.
“These enhancements will allow consumers to more easily compare their segregated fund contracts with other investments, supporting informed financial decisions. These requirements also more closely align with those in the securities sector,” the regulator states in the announcement.
The rule includes a number of exceptions, including for instance, where historical data is not available and for legacy systems. FSRA says the circumstances under which companies can make use of the legacy systems exception, for example, are specific and narrow. Insurers using the exceptions must also meet a number of other conditions.
It adds that FSRA will confirm the rule’s effective date in a follow-up announcement. It is anticipated that insurers will be required to start sending out enhanced annual statements to their segregated fund clients in 2027, for the year ending on Dec. 31, 2026.
Related:
Ontario regulator sends total cost reporting rule to minister for approval
