As TCR nears advisors should see it as an opportunity, says Manulife’s Chilcott

Total Cost Reporting (TCR) requirements for Canadian investment funds come into force in a little over three months, so it’s time to ensure preparations are in place.

Once the new regime is fully implemented, investors must be informed of the costs of mutual funds, ETFs, and segregated funds and from January 1, 2026, investment and wealth management professionals need to begin collecting this information. The communication of this to clients will be a requirement from one year later.

Jordy Chilcott, head of retail intermediary distribution, Canada, at Manulife Investments, says preparation is key.

“As advisors, it's important to start preparing for TCR well in advance of the January 1, 2026, deadline,” he says. “Begin by reviewing your clients' portfolios to identify any mutual funds, ETFs, or segregated funds that might be affected. Familiarize yourself with TCR statements and understand investment management fees in dollar terms, so you can clearly communicate these costs to your clients. Train your team to assist with client communication and be sure to document these discussions.”

Stronger relationships

While TCR may appear to be just about costs, Chilcott says it’s an opportunity to strengthen relationships through greater transparency.  

“Explain that TCR is a regulatory enhancement designed to empower clients and use this as an opportunity to highlight the value of your advice and deepen trust,” he says. “Use straightforward language, avoid jargon, and relate fees to performance, goals, and the wealth management services you provide.”

This is also about demonstrating your value, Chilcott says, citing studies like 'The Gamma Factor and the Value of Advice Study' that show that investors who work with advisors build significantly more wealth over time.

And he highlights the role of behavioral coaching in helping clients avoid emotional decisions, and the importance of linking value to tangible services such as portfolio construction, financial planning, and estate strategies.

“Use real-life examples to show how your advice has helped clients navigate market volatility or life transitions,” he says.

Changing conversations

 As with any significant change for the industry, the first year of TCR may bring noticeable shifts.

“Expect an increase in client inquiries about costs. Conversations may move from being product-centric to focusing more on the value you provide,” Chilcott says. “High-net-worth clients may want more in-depth justifications for fees and value, while fee-sensitive investors might compare costs across platforms. New investors may need more education to understand embedded fees, and those curious about DIY or robo-advisors might use TCR as a benchmark for evaluating alternatives.”

TCR also affects the competitive landscape and Chilcott says it could level the playing field by requiring all platforms to disclose embedded costs, not just advisor fees.

“This is an opportunity to differentiate yourself with personalized planning and behavioral coaching, though it may also lead to fee compression, requiring advisors to justify fees more rigorously or offer tiered service models,” he explains.

Manulife is supporting advisors with a range of tools such as a TCR micro site with a client FAQ, educational materials, updates to the advisor portal, practice management modules, and investment consulting services to help advisors communicate their value effectively.

Ultimately, Chilcott believes that TCR can broaden the conversation beyond costs.

“Use TCR as a bridge to discuss value, goals, and outcomes,” he suggests. “Integrate financial planning into your conversations and show how fees support services like tax planning, estate strategies, and retirement modeling. Position financial planning as a tool for designing your clients' lives.”