advisor and client meeting

The Autorité des marchés financiers (AMF) has published proposals to introduce beefed up reporting requirements for segregated funds, under the joint total cost reporting initiative of the insurance and securities regulators.

The AMF issued draft rules for consultation that will enhance performance, guarantee and cost reporting requirements for seg funds.

The proposals follow guidance issued last spring by the Canadian Council of Insurance Regulators as part of its joint effort with the Canadian Securities Administrators that aims to enhance and harmonize reporting requirements for both seg funds and investment funds.

“To make informed decisions, consumers need to know all the costs associated with the segregated funds they purchase through their insurers. These products have long-term horizons, and the associated costs have a compounding effect on performance,” said Patrick Déry, superintendent of financial institutions with the AMF, in a release.

“The new rules will result in greater transparency and will enhance consumer protection, particularly by making consumers more aware of the rights and guarantees included in their contracts,” he said.

The AMF’s draft rules are out for comment until Dec. 2.

The new rules are expected to take effect on Jan. 1, 2026, with investors expected to receive their first reports under the new rules in 2027, for the year ended Dec. 31, 2026.