The British Columbia Securities Commission has issued an order, effective January 1, 2026, to amend National Instrument 31-103, Registration Requirements, Exemptions and Ongoing Registrant Obligations, B.C. Reg. 226A/2009.

The amendments introduce new definitions and obligations designed to improve transparency and reporting for investment funds and their managers. Key additions include definitions for “direct investment fund charge,” referring to amounts charged to clients for buying, holding, selling, or switching securities of an investment fund, including applicable sales taxes; “fund expense ratio,” which is the sum of a fund’s management expense ratio and trading expense ratio expressed as a percentage; “management expense ratio,” aligned with the definition in National Instrument 81-106; “newly-established investment fund,” which generally refers to funds that have not yet filed a management report of fund performance or are less than twelve months old; and “trading expense ratio,” reflecting the percentage of total commissions and transaction costs relative to a fund’s average net asset value.

Section 14.1.1, which governs the duty of investment fund managers to provide information, has been replaced to require that registered fund managers deliver the information necessary for registered dealers or advisers to meet specific reporting obligations concerning clients’ holdings. New sections have been added to define how fund expenses per security must be calculated. The fund expense per security for each day a client owns a security is determined using a formula multiplying the daily fund expense ratio by the market value of the security. Managers may provide reasonable approximations when necessary unless this would result in misleading information. Newly-established investment funds are exempt from providing certain detailed expense information.

Section 14.17 has been substantially expanded to require detailed reporting of fund expenses and charges to clients. Investment fund managers and registered firms must now report total fund expenses charged to the fund, total direct investment fund charges charged to the client, combined totals, the fund expense ratio for each class or series of securities, and provide notifications explaining these costs. Additional notifications are required for deferred sales charges, direct investment fund charges, foreign investment funds, and other investment products that may have embedded fees not included in the report. Clients are advised on the impact of these fees on long-term returns and on actions they can take, including consulting their advisers or evaluating self-directed investments.

New provisions also establish processes for calculating total daily fund expenses for reporting purposes, including allowances for approximations when exact data is unavailable. Investment funds that are newly-established or certain exempt funds, including labour-sponsored or prospectus-exempt funds, may be excluded from specific reporting requirements, with appropriate notifications provided to clients.

British Columbia (31-103) December 30, 2025
Disclaimer: Insights are for informational purposes only and does not reflect RRI’s official position or constitute legal opinion.