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) as well as direct fees charged to their accounts (purchase fees, redemption fees, switch fees and short-term trading 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.
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.