{"id":165708,"date":"2025-09-24T08:32:10","date_gmt":"2025-09-24T08:32:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/165708\/"},"modified":"2025-09-24T08:32:10","modified_gmt":"2025-09-24T08:32:10","slug":"wealthsimple-questrade-ask-ottawa-to-regulate-registered-account-transfers","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/165708\/","title":{"rendered":"Wealthsimple, Questrade ask Ottawa to regulate registered account transfers"},"content":{"rendered":"

Open this photo in gallery:<\/a><\/p>\n

Wealthsimple chief executive officer Michael Katchen in Toronto in July. Wealthsimple and Questrade have raised concerns about the high costs and long delays when transferring registered accounts.Cole Burston\/The Canadian Press<\/p>\n

Ottawa should regulate the cost and time it takes Canadians to transfer tax-advantaged investment and savings accounts from one financial institution to another, some digital brokers have told federal officials. <\/p>\n

In the lead-up to the 2025 federal budget expected on Nov. 4, both Wealthsimple Technologies Inc.<\/a> and Questrade Financial Group Inc. said they are involved in consultations with the government about setting standards for account transfer fees and timelines. The talks focus on what\u2019s known as registered accounts, such as tax-free savings accounts, or TFSAs, and registered retirement savings plans, or RRSPs.<\/p>\n

Transfer fees, also known as exit fees, for registered accounts have roughly doubled since the 2010s, with many banks and investment dealers now charging $150 per account, Wealthsimple said in a recent federal budget submission. Citing internal data, the company also said it often takes more than a month and a half for sending institutions to move the money, even after receiving all required documentation.<\/p>\n

Wealthsimple asks Ottawa to review rising bank transfer fees<\/a><\/p>\n

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Wealthsimple and Questrade, which are courting consumers who invest through the big banks or their subsidiaries, have an interest in seeing regulatory checks on transfer fees and delays. But investor advocates say consumers at large would benefit from cheaper and faster account transfers.<\/p>\n

\u201cWhen you think about having to pay exit fees, it\u2019s like a penalty for switching to a new financial institution that might be able to better serve your needs,\u201d said Jean-Paul Bureaud, executive director at FAIR Canada, a national organization that \u200b\u200bchampions the interests of individual investors.<\/p>\n

Mr. Bureaud also said it is common for account transfers to take weeks or even months, a timeline he called \u201cshocking.\u201d <\/p>\n

The long wait times can also deliver a financial hit for consumers, who might lose out on market opportunities or forgo interest income while their money sits on the sidelines instead of being invested, he said. Sometimes, investors may miss contribution deadlines because of transfer delays, he added.<\/p>\n

Account transfer issues have long been a source of customer complaints. But the main effort to address the concerns has so far occurred at the provincial level. The Canadian Investment Regulatory Organization, or CIRO, oversees investments dealers on behalf of provincial regulators, and has proposed a standard settlement period of 10 clearing days for account transfers. <\/p>\n

But in talks leading up to the federal budget, Wealthsimple and Questrade have asked Ottawa to regulate transfers specifically of tax-advantaged accounts, which are registered with the federal government. <\/p>\n

These also include registered education savings plans, or RESPs, which help families save for a child\u2019s education after high school, and first home savings account, or FHSAs, which help first-time homebuyers save for a house. <\/p>\n

\u201cWe have provided input in pre-budget consultations with the federal government and advocated for a regulatory standard for transfer fees and timelines for registered accounts,\u201d Questrade spokesperson J.R. Gabriel told The Globe and Mail in an e-mailed statement.<\/p>\n

In its budget submission, Wealthsimple argued that the federal government has \u201csole and complete jurisdiction\u201d over registered accounts. Ottawa, it said, should use \u201cits unilateral authority to impose conditions on how those accounts are administered, including restrictions on fees, no matter whether the account is offered by a federally- or provincially-regulated financial institution.\u201d<\/p>\n

Wealthsimple exec apologizes to customers after data breach, says no account details were misused<\/a><\/p>\n

The Department of Finance did not answer a question from The Globe about whether it has the ability to impose caps on transfer fees for registered accounts, but said more details on the government\u2019s agenda will be available in the budget.<\/p>\n

Questrade said it covers transfer fees up to $150 for incoming funds, with no minimum account size requirements for the refunds. Wealthsimple said it reimburses the charges for account transfers worth $25,000 or more, but does so automatically, without waiting for customers to ask for the rebate, as is common industry practice.<\/p>\n

Both institutions are also raising the issue of long transfer times with Ottawa. Wealthsimple said that between October, 2024, and March, 2025, for 45 per cent of its incoming transfers of registered plans, originating institutions relied on fax and mailed cheques to execute customer requests to move their money.<\/p>\n

In addition to setting a 10-day clearing standard, the CIRO proposal would also require investment dealers to use an automated system for eligible transfers. The proposed rule changes are currently subject to consultations. <\/p>\n

Separately, the Canadian Bankers Association, a lobby group that includes all the big banks, has voluntary guidelines that ask banks to process transfers within seven to 12 business days for registered accounts. Banks only offer investment options such as savings accounts and guaranteed investment certificates for registered accounts, though many offer other investments through subsidiary dealers. <\/p>\n

Wealthsimple has recommended that Ottawa conduct compliance audits of the guidelines.<\/p>\n","protected":false},"excerpt":{"rendered":"Open this photo in gallery: Wealthsimple chief executive officer Michael Katchen in Toronto in July. Wealthsimple and Questrade…\n","protected":false},"author":2,"featured_media":165709,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[45,49,48,2741],"class_list":["post-165708","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-ca","tag-canada","tag-pf-ca"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/165708","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=165708"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/165708\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/165709"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=165708"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=165708"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=165708"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}