The Canadian Investment Regulatory Organization’s (CIRO) version of the CRM3 rules has been approved by provincial regulators.
Last October, the industry self-regulatory organization published proposed changes to its rules that adopt the enhanced cost reporting disclosure requirements developed by the Canadian Securities Administrators (CSA). These changes expand reporting to fund investors by adding the ongoing charges and expenses levied by fund managers to the existing reporting of dealer fees and charges.
The changes to CIRO’s rules are primarily intended to harmonize its cost reporting requirements with the CSA’s new rules, which take effect on Jan. 1, 2026. Firms will deliver their first annual reports under the new rules in 2027, covering calendar year 2026.
“The proposed amendments seek to further investor protection by mandating enhanced transparency of investment fund costs and ensuring regulatory alignment,” the SRO noted in its proposals.
Along with implementing the CSA’s requirements, the SRO also aims to rationalize some of the existing differences in the reporting practices of mutual fund dealers and investment dealers.
While no changes were made to the proposals as a result of the consultation, CIRO said it plans to issue further guidance to help dealers implement the requirements.
It also acknowledged that dealers may face challenges obtaining the required cost information from certain foreign investment funds. While the rules allow firms to exclude data that can’t reasonably be obtained, the SRO said some third-party service providers “are developing solutions which may help address” these issues.