At the Joint Forum of Financial Market Regulators June annual meeting, members of the country’s various market regulators heard from stakeholders representing industry associations and consumer advocates interested in discussing the Total Cost Reporting (TCR) consultation.
The Joint Forum includes members of the Canadian Securities Administrators (CSA), the Canadian Council of Insurance Regulators (CCIR), the Canadian Association of Pension Supervisory Authorities (CAPSA), the Canadian Insurance Services Regulatory Organizations (CISRO) and members of the Mortgage Broker Regulators’ Council of Canada.
The TCR consultation proposes to enhance the cost disclosure reporting requirements for investment funds and segregated funds. The regulators say the enhanced cost disclosure increases public protection by improving investors’ and policy holders’ awareness about embedded fees.
“Policy holders and investors deserve to understand all costs associated with owning investment and segregated fund products and be able to more easily compare their performance,” says Canadian Council of Insurance Regulators (CCIR) chair, Robert Bradley. “Insurance regulators understand that the insurance industry is supportive of this initiative.”
Registrants and insurers were further encouraged to conduct advanced planning in order to implement the necessary changes as quickly as possible following the finalization of the TCR requirements.
The consultation, launched in April, will accept formal submissions until July 27, 2022.