Managing the shift to Total Cost Reporting
Starting January 1, 2027, annual statements for segregated funds and Registered Investment Accounts (RIA) will include a new Total Cost Reporting (TCR) section showing the total dollar cost of investing, expanded performance reporting, and a dedicated summary of contract guarantees.
While TCR introduces new disclosure requirements, it also creates new opportunities for advisors to reinforce trust and demonstrate value.
Costs aren't changing. Visibility is.
TCR doesn't introduce new costs. The Fund Expense Ratio (FER), which includes management and trading expenses, has always been part of the cost of investing and fees shown are already deducted from the portfolio return. Advisor compensation has always been paid through those expenses and is not a new or separate fee.
What's changing is that clients will now see the total cost of investing displayed more prominently on their annual statement.
That creates an opportunity for advisors to provide context before clients receive their statements. When clients understand what the number represents, and the advice, support, and protection that come with it, they are better positioned to see the full value of their investment relationship.
An opportunity to talk about guarantees
In January, Assumption Life’s new statement won’t just highlight costs. It will also include a dedicated guarantees section showing guarantee values, guarantee type, and the impact withdrawals may have on those guarantees.
For Assumption Life clients, this will be the first time they see these benefits presented so clearly. Reviewing guarantees alongside costs helps clients better understand both what they're paying for and what they're receiving in return.
A chance to reinforce your value
Every advisor provides value that doesn’t appear as a line item on a statement. That might mean helping clients stay disciplined during market volatility, reviewing their financial plans, updating beneficiaries, or helping them understand contract features and guarantees.
This introduction of CRM3 guidelines creates a natural opportunity to connect those services to the client experience and reinforce the ongoing value of advice.
What you can do now
- Start discussing TCR before the first enhanced statements arrive.
- Use the new guarantees section as a conversation starter.
- Be prepared to explain your value with specific examples.
- Consult Assumption Life’s TCR resource page for the following resources:
The bottom line
TCR is more than a regulatory change. It's an opportunity to demonstrate transparency, reinforce value, and strengthen client confidence.
Advisors who approach the conversation proactively can help clients better understand not only the costs associated with their investments, but also the advice, support, and guarantees that come with them.
