Total Cost Reporting

Transparency you can stand behind

At NEI, transparency is not a new idea. It is how we have always done business. For years, we have helped advisors and clients clearly understand what they own, why they own it, and the value it can deliver. Total Cost Reporting (TCR) extends that same principle by making investment costs easier to see and easier to discuss.

This page is a guide to what TCR means, how it changes the conversation, and how advisors can help clients see the full picture with confidence. As new resources become available, you'll find them here.

What is TCR?

Total Cost Reporting, also known as CRM3, is a regulatory initiative led by the Canadian Securities Administrators and the Canadian Investment Regulatory Organization to expand cost disclosure for investment funds. It expands fee transparency by ensuring clients get a complete, dollar-based view of the costs they incur, including the embedded fees inside their investment funds.

It builds on the reforms that came before it:

CRM1

2009

Basic suitability & conflict disclosure

CRM2

2016

Advisor compensation shown in $ on client statement + Performance Report

CRM3 / TCR

2026

Embedded fund costs now shown in $ on client statement

These are NOT new fees. Fund expenses (MER, TER) have always been deducted from the fund value and already reflected in returns. TCR does not introduce any new costs, it requires embedded costs be calculated and shown as a dollar amount.

THE KEY NEW METRIC : FUND EXPENSE RATIO (FER)

FER = MER + TER

Management Expense Ratio
management fees, operating costs, taxes

Trading Expense Ratio
cost of buying/selling inside the fund

For advisors who already lead with transparency, this is a natural fit, not a hurdle.

What TCR means for advisors

TCR is an opportunity to reinforce something advisors already believe; that clarity builds trust, and trust builds lasting relationships. By framing the change early, we are turning a reporting requirement into a moment that reflects our values.

Leading with confidence: We understand the change before our clients see it. Proactive conversations build credibility and help prevent surprises.
Reframing cost as value: Our advisors can connect costs to the outcomes their clients care about, such as risk management, planning reviews, tax conversations, investment decision support, and the responsible investing principles that shape portfolios.

Advisor action areas: Start the conversation early. Explain what is changing. Connect cost to value.

What TCR means for clients

For clients, TCR delivers a clearer, more complete picture of what they pay to invest. Changes to client statements will highlight a fuller picture of ownership costs for in-scope fund holdings together in one place, including advisor and dealer compensation as well as embedded fund costs.

Starting with the 2026 reporting year, clients will see two new elements on their annual statement:

Fund Expense Ratio (FER) per fund: The percentage cost of owning each fund held during the year
Total fund expenses in dollars: The total dollar amount the client incurred in embedded fund costs across all holdings for the year

The dollar cost is generally calculated using each fund’s Fund Expense Ratio and the client's holdings over the period they held the fund during the year. Fees are not going up. TCR changes how existing costs are reported, not what clients pay.

For clients who want to understand exactly where their money goes, this deeper level of disclosure is something to welcome.

What's coming and when

TCR took effect
Jan. 1, 2026

Regulatory rules came into effect. Daily fund cost data collection began for all in-scope products.

Year-end close
Dec. 31, 2026

The first full TCR reporting year closed. Full-year cost data was aggregated.

Client statements
Early 2027

Clients received their first TCR-enhanced statement with dollar-based fund costs.

Turning TCR into a value conversation

At NEI, we've always believed cost and value are two different things. TCR helps make that distinction clear by connecting what clients pay to the advice, the outcomes, and the investment management they receive in return.

TCR will show clients not just what they pay, but the planning, guidance, and long-term thinking behind their portfolios. For clientswho choose NEI because they care about impact and integrity, that conversation reinforces why they invest the way they do.

The value of advice (PDF)

Changes coming to client statements

Sample client statements will be available closer to the end of 2026.

FAQs

Your TCR go-to resource hub

Transparency is at the heart of how NEI invests. Check back here for everything you need to prepare for TCR. We'll continue adding new resources as they become available. This information is provided for general educational purposes and is not investment, legal, tax or regulatory advice. Investors should speak with their advisor about how the new reporting may apply to their account and holdings.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.