Total Cost Reporting (TCR) is a new disclosure standard introduced by Canadian securities regulators to help you, as an investor, clearly understand the full cost of your investment products and the services you receive.
Starting Dec. 31, 2026, investment firms across Canada must follow new TCR requirements for investment fund contracts. As a result, your first statement showing these new cost details will arrive in January 2027.
The goal of TCR is simple: to give you greater transparency about what you pay for your investments. You’ll see embedded fees expressed in both dollar amounts and percentages in your Annual Report on Charges and Other Compensation (ARCC). With this information, you can make more informed decisions about your investment strategy.
What You’ll See on Your 2026 Annual Statement
For investment funds and ETFs
TCR builds on the cost and compensation disclosures introduced under the Client Relationship Model 2 (CRM2). One of the key new pieces of information you’ll see is:
Fund Expense Ratio (FER)
This is a new calculation that combines:
- Management Expense Ratio (MER)
- Trading Expense Ratio (TER)
Together, these represent the total cost of running and trading within a fund. FER hasn’t been shown on statements before and will now appear clearly beginning in January 2027.
What FER looks like in dollars
If the MER is 2.2% and you have $10,000 invested:
- 2.2% × $10,000 = $220
This $220 reflects the cost of:
- professional fund management
- operating expenses
- administration
- taxes
These costs are already built into the fund’s daily pricing. TCR simply makes them visible in dollars.
If your fund has a TER of 0.15% and you have $10,000 invested:
- 0.15% × $10,000 = $15
This reflects the cost of buying and selling securities inside the fund.
On your new statement, the MER and TER fees will appear as:
- FER (2.35%)
- Total cost in dollars: $235 for the year
This $235 is not an additional fee—it's simply now being shown directly so you can better understand the costs already embedded in the fund.
How TCR benefits you
TCR is designed to give you a clearer picture of the fees and costs within your investment portfolio. With better visibility, you’ll be empowered to:
- Understand exactly what you’re paying
- Evaluate the value you receive
- Make more informed decisions as you work with your advisor toward your financial goals
What This Means for Your Relationship With Your Advisor
Understand the value of the advice you receive
As these changes roll out, you may notice new information on your year‑end statement. Your advisor can walk you through these details and help you understand what each cost reflects. While the fees themselves are not new, showing them directly on your statement is.
Ask questions—your advisor is there to help
With more transparency, it’s natural to have questions. Your advisor can help explain:
- How your investment products are selected
- How fund managers manage risk and adjust portfolios
- Why certain products align with your goals and risk tolerance
The content of this material (including facts, views, opinions, recommendations, descriptions of or references to, products or securities) is not to be used or construed as investment advice, as an offer to sell or the solicitation of an offer to buy, or an endorsement, recommendation or sponsorship of any entity or security cited. Although we endeavour to ensure its accuracy and completeness, we assume no responsibility for any reliance upon it.
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