Understanding
Total Cost Reporting
Greater transparency, clearer value, better decisions.
As an investor, it’s important to understand what you pay for advice, services and investment products, because costs can affect your overall investment performance. Until now, some investment costs haven’t always been easy to see or understand. That’s changing.
What is Total Cost Reporting?
Total Cost Reporting (TCR) is a new regulatory initiative by the Canadian Securities Administrators (CSA) and the Canadian Investment Regulatory Organization, designed to give you a more comprehensive picture of the costs associated with your investments. The goal is simple: to help you better understand what you’re paying, so you can have more informed conversations with your advisor.
What’s changing?
Beginning in January 2027, your Annual Report on Charges and Other Compensation will include a new section that shows the total dollar amount you paid for the investment products you owned during the previous year, such as mutual funds and exchange-traded funds (ETFs).
This section may include:
- Compensation paid for advice and wealth management services
- Management fees and operating expenses
- Fund trading costs
- Other investment-related expenses
What this means for you
Rather than seeing some of these costs expressed only as percentages or embedded within investment products, you’ll now see them reported in clear dollar amounts, giving you more transparency into the costs associated with your investments.
The costs associated with your investments are not changing because of TCR. What is changing is the level of detail provided, giving you a better understanding of what these costs are.
The value of working with an advisor
While TCR helps you better understand the costs associated with investing, it’s also important to realize the value of professional advice.
By working with a Richardson Wealth advisor, you benefit from a full-service offering that goes far beyond investment selection, including:
- Tailored cash flow analysis to help you balance today’s needs with tomorrow’s goals
- Comprehensive financial planning, including retirement, tax, and estate planning strategies
- Portfolio construction and ongoing management
- Guidance to help you navigate changing market conditions and life events
- Coordination with your accountant, lawyer and other professional advisors when appropriate
- Regular reviews to help keep your plan aligned as your goals, family, career or retirement plans evolve
TCR helps answer the question, “What am I paying?” Your advisor helps answer another important question: “What am I getting in return?”
Together, they give you a more complete picture of your investments, and the advice that supports them.
Have questions?
If you have questions about Total Cost Reporting or what these changes mean for you, please contact your Richardson Wealth advisor.