The Financial Services Regulatory Authority of Ontario (FSRA) has submitted its Board-approved Total Cost Reporting Rule to the Ontario Minister of Finance for approval, which would require insurers to provide customers with enhanced annual statements disclosing total costs and investment performance for individual variable insurance contracts (segregated fund contracts). The enhanced disclosures are intended to make it easier for customers to compare segregated fund contracts with other investments and to align cost and performance reporting with the securities sector. Following stakeholder feedback, the final rule adds two exceptions intended to avoid unreasonable implementation costs for insurers that could be passed on to customers; insurers relying on the exceptions would have to meet specified conditions, including submitting an attestation to FSRA, which FSRA may rely on when determining any supervisory action using a risk-based approach. If the Minister approves the rule in 2025, customers should begin receiving the enhanced annual statements in 2027 for the year ending 31 December 2026; FSRA indicated there were no further material changes after consultation.
Financial Services Regulatory Authority of Ontario 2025-04-11
Financial Services Regulatory Authority of Ontario submits total cost and performance reporting rule for segregated fund contracts for ministerial approval
The Financial Services Regulatory Authority of Ontario submitted its Total Cost Reporting Rule to the Ontario Minister of Finance for approval. The rule mandates insurers provide enhanced annual statements on total costs and investment performance for segregated fund contracts, aligning with securities sector standards. Two exceptions were added to mitigate implementation costs, requiring insurers to meet specific conditions and submit attestations to FSRA.