Better information for segregated fund consumers
FSRA's rule will require insurers to provide enhanced annual statements that disclose total costs and performance
TORONTO, Dec. 18, 2025 /CNW/ - The Financial Services Regulatory Authority of Ontario (FSRA) is taking steps to strengthen consumer protection and improve transparency for people who own individual variable insurance contracts (segregated fund contracts).
FSRA's Total Cost Reporting (TCR) Rule will take effect on January 1, 2026. Once in force, the rule will require insurers to provide consumers with enhanced annual statements that clearly disclose total costs, fees, and investment performance associated with their segregated fund contracts.
For the first time in Ontario, consumers will receive enhanced information on the total costs they pay and the returns they earn, which they can use to better understand value and compare segregated funds with other investment products.
"Ontarians deserve clear, comprehensive information about the true cost and performance of their investments," said Erica Hiemstra, Head of Insurance Conduct at FSRA and Vice-Chair of the Canadian Council of Insurance Regulators (CCIR). "These enhanced statements will help consumers make more informed financial decisions and align segregated fund reporting more closely with reporting in the securities sector."
FSRA's requirements adopt the CCIR's national guidance and are closely aligned with cost reporting requirements in the mutual fund sector. This supports clearer, more consistent information for consumers and creates more harmonized regulatory requirements for insurers across Canada.
Insurers will be required to begin providing the enhanced statements in 2027, covering the 2026 reporting year.
Learn more:
FSRA continues to work on behalf of all stakeholders, including consumers, to ensure financial safety, fairness, and choice for everyone. Learn more at www.fsrao.ca.
FOR MEDIA INQUIRIES:
Russ Courtney
Sr. Manager of Media Relations
Financial Services Regulatory Authority
C: 437-225-8551
Email: russ.courtney@fsrao.ca
SOURCE Financial Services Regulatory Authority of Ontario