CRM3: Greater transparency about investment fees
We explain the new information shown in your annual report regarding charges and other forms of compensation—and what it means for you.
What is CRM3?
Client–Advisor Relationship Model – Phase 3 (CRM3) is a regulatory update across the Canadian securities industry. It allows investors to see the total cost of their investments, including fund expenses (management fees, operating expenses and trading costs), direct fund charges applied to their accounts (purchase fees, redemption fees, switch fees and short-term trading fees) and service fees (advisory fees, commissions and account maintenance fees).
The first reports reflecting this standard will be available in January 2027 for the 2026 calendar year.
Greater transparency
CRM3 requires disclosure of the following information:
- The total dollar amount of fund expenses of all investment funds
- The fund expense ratio (FER), expressed as a percentage, which combines the management expense ratio (MER) and the trading expense ratio (TER) for each investment fund.
No new fees
You won’t pay any new fees on your investments.
CRM3 presents existing costs in a clear and detailed way so you can easily understand what you’re already paying.
Expertise and advice: Value that goes beyond costs
Greater fee transparency gives you a clearer picture of everything that makes up an investment solution, including portfolio management expertise, strategic diversification and professional long-term investment management.
The guidance, personalized advice and ongoing support you receive are also part of the value of your investment experience. They help ensure your portfolio reflects your situation, financial goals and evolving needs. When evaluating an investment solution, it’s important to look beyond costs alone and consider the overall value it can provide.
Answers to your questions
Will I pay more fees on my investments?
No, you won’t pay more fees on your investments. CRM3 simply provides greater transparency by showing you the total amount of fees you already pay on your investments.
What impact will these fees have on my returns?
CRM3 won’t affect your returns. Fund returns that were already reported will remain unchanged.
Speak with your advisor if you’re concerned about fees affecting your returns. They can find you the investment products best suited to your needs.
Is Desjardins the only financial institution affected by CRM3?
No. Desjardins isn’t the only financial institution affected by CRM3. CRM3 is a new regulation that applies to the entire Canadian financial industry.
What are MER, TER and FER?
The management expense ratio (MER) includes costs related to managing your portfolio, such as management fees, administrative expenses and taxes.
The trading expense ratio (TER) reflects the costs associated with buying or selling securities within the fund, such as transaction fees.
The fund expense ratio (FER) combines the MER and the TER. It represents the total percentage of your fund’s assets used annually to cover fund expenses. For example, if your investment’s FER is 2%, this means that an amount equal to 2% of the value of your investment is used to pay the fund’s expenses.
What is the value of the fees I pay?
The fees cover more than access to an investment product. They support a comprehensive investment approach that includes portfolio management expertise, professional asset management, diversification, ongoing market monitoring and personalized guidance tailored to your needs.
How are fees considered when I receive investment recommendations?
Fees are an important consideration when developing your investment strategy, but they’re evaluated alongside many other factors, including a product’s features, the services offered, portfolio diversification and potential returns. Your advisor’s role is to recommend solutions that align with your needs, financial goals, investment time horizon and risk tolerance. They consider all relevant factors, not just the cost of the product.
How will CRM3 change the support I receive from Desjardins?
CRM3 is designed to give you a clearer and fuller picture of the costs associated with certain investments. This additional transparency can lead to more informed conversations with your advisor about your investments, including their costs, features and long-term benefits. By better understanding the investments and services we offer, you’ll also feel more confident in your financial decisions.
What should I compare when evaluating different investment solutions?
It’s important to consider all the elements that contribute to the value of an investment solution, not just costs. With CRM3, you’ll have access to more complete information about the costs associated with your investments, making it easier to understand and assess them alongside their benefits.
The best solution isn’t necessarily the one with the lowest costs. It’s the one that offers the right balance between costs, services and the ability to help you achieve your long-term financial goals.