The CRM3 / Total Cost Reporting
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.
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.
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.
Three things to know before meeting with your clients
The Fund Expense Ratio
The FER presents certain fund costs as a ratio, according to the terms applicable to the contract and statement.
Fees expressed in dollars
Clients will see certain costs presented in dollars, which may raise new questions about the amounts displayed.
More detailed information
The statements are intended to make the costs associated with segregated funds easier to read and understand.
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.
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.
Four steps to support your clients effectively
What your clients may ask you
“Why are these fees appearing now?”
Explain that the new presentation is intended to make certain costs already associated with the investments more visible.
“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.
“What am I getting in return?”
Review the contract features, applicable guarantees and the relevance of the solution based on the client’s objectives.
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.
Two tools to help you prepare now
Review the FAQ and use the bilingual communication template to inform your clients consistently.
Advisor FAQ — Segregated Funds
CRM3 / TCR reference document to deepen your understanding of the new requirements.
Client communication template
Email and letter templates ready to personalize in French and English.
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.
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.
