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The CRM3 / Total Cost Reporting

SFG • SEGREGATED FUNDS • INFORMATION FOR ADVISORS

CRM3 / Total Cost Reporting:
prepare your clients for greater cost transparency

New information will appear on annual segregated fund statements beginning in 2027. Understand the changes and prepare your communications now.

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OCTOBER 15, 2026 · IMPORTANT INFORMATION

A new presentation of costs, not necessarily new fees

Annual statements covering 2026 will include more detailed disclosure of certain costs related to segregated funds. The objective is to provide clients with a clearer view of the fees associated with their investments and make them easier to understand.

2027 First annual statements affected by the new presentation of 2026 costs.
FER Fund Expense Ratio presented according to the applicable requirements and information.
In $ Certain fund-related fees will also be expressed in dollars.
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What is changing
with CRM3?

Total Cost Reporting (TCR) is intended to provide more complete and readable information about costs. For clients who hold segregated funds, statements will provide additional details about fund-related fees.

Fund Expense Ratio (FER) Fees in dollars Transparency Client understanding
CHANGES TO EXPLAIN

Three things to know before meeting with your clients

01 — INDICATOR

The Fund Expense Ratio

The FER presents certain fund costs as a ratio, according to the terms applicable to the contract and statement.

02 — AMOUNTS

Fees expressed in dollars

Clients will see certain costs presented in dollars, which may raise new questions about the amounts displayed.

03 — CONTEXT

More detailed information

The statements are intended to make the costs associated with segregated funds easier to read and understand.

💡 The key message to communicate
These are not new fees. The costs concerned already existed and were built into the product. The new presentation is intended to make them more visible. However, verify the information specific to each insurer and contract before providing any personalized explanation.
WHY ACT NOW?

Your clients may see these amounts for the first time

Seeing fees expressed in dollars may be surprising, even when those costs already existed. Proactive communication helps prepare clients, answer their questions and put the information into context.

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Turn a requirement
into a useful conversation

Use this development as an opportunity to review your clients’ objectives, needs, the characteristics of their segregated funds, and the guarantees or protections that actually apply to their contract.

Objectives Needs Guarantees Support
YOUR ACTION PLAN

Four steps to support your clients effectively

📚 Understand Read the FAQ and verify the applicable requirements
✉️ Inform Adapt the communication template
🗣️ Explain Prepare answers to questions about costs
🤝 Support Offer to review the statement and contract
QUESTIONS TO ANTICIPATE

What your clients may ask you

QUESTION 01

“Why are these fees appearing now?”

Explain that the new presentation is intended to make certain costs already associated with the investments more visible.

QUESTION 02

“Am I paying more than before?”

Clarify that the display itself does not mean that new fees have been added. Verify the contract information before drawing a conclusion.

QUESTION 03

“What am I getting in return?”

Review the contract features, applicable guarantees and the relevance of the solution based on the client’s objectives.

COMMUNICATION TEMPLATE

A simple message to inform your clients

The template provided to advisors includes an email and a letter in French and English. Here is a short framework inspired by the document, to personalize and verify before sending.

SAMPLE EMAIL TO ADAPT
Subject: New cost information will appear on your segregated fund statement Hello [First name], I would like to let you know that your next annual segregated fund statement may provide more details about certain costs, including fees expressed in dollars and the Fund Expense Ratio (FER), depending on the characteristics of your contract. These are not new fees: this information is intended to make existing costs more transparent. I remain available to review your statement with you, answer your questions and, if needed, revisit your objectives and the characteristics of your contract. Sincerely, [Advisor name]
Before sending: adapt the message to the client relationship and verify the information specific to the insurer and contract. Do not use the text as an automatically approved communication.
RESOURCES FOR ADVISORS

Two tools to help you prepare now

Review the FAQ and use the bilingual communication template to inform your clients consistently.

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Advisor FAQ — Segregated Funds

CRM3 / TCR reference document to deepen your understanding of the new requirements.

VIEW THE FAQ ↗
✉️

Client communication template

Email and letter templates ready to personalize in French and English.

DOWNLOAD THE TEMPLATE ↗
YOUR TURN

Prepare your next CRM3 conversation

Don’t wait for your clients to call you after receiving their statement. Three simple actions can help you anticipate their questions.

01 — READ Review the advisor FAQ.
02 — ADAPT Personalize the email or letter template for your clientele.
03 — PLAN Plan the discussions needed to explain the statements and review client needs.
KEY TAKEAWAY

More transparency, more dialogue.

The new cost disclosure requirements can become an opportunity to strengthen your clients’ understanding and trust. Prepare now and stay tuned for upcoming SFG communications regarding CRM3.