Are Big Banks Putting Their Interests Ahead of Yours?
When Canadians turn to their bank for investment advice, they often expect unbiased guidance that puts their needs first. But recent findings from regulators show that may not always be the case. Many bank employees are under pressure to recommend products that benefit sales targets and bonuses—not necessarily the client.
The Pressure Behind the Advice
A joint report by the Ontario Securities Commission (OSC) and the Canadian Investment Regulatory Organization (CIRO) found that sales culture plays a major role in shaping advice given at Canada’s largest banks. Nearly 3,000 investment representatives at bank-affiliated dealers were surveyed. Alarmingly, four in ten said performance tools, like scorecards tied to sales, influenced their recommendations to clients. This means the products being suggested may be more about meeting sales goals than helping clients reach their financial objectives.
When Information Isn’t Clear
The same survey revealed that one in three representatives admitted clients sometimes received inaccurate information about the products they were being recommended. Imagine walking into your bank, trusting the advice you’re given, only to later discover the information was incomplete or misleading. That kind of experience can erode trust and leave clients questioning whether they’re truly being looked after.
Advice That May Not Be in Your Best Interest
Even more concerning, one in four representatives acknowledged that clients sometimes received recommendations that were not in their best interest. This highlights a conflict: when compensation and performance reviews are tied to sales, advisors may feel pressured to promote products that benefit the bank rather than the client. This is not just a small issue—it has the potential to affect everyday Canadians trying to save for retirement, buy a home, or plan their future.
Why Regulators Are Stepping In
Regulators are now asking banks to review their incentive practices, performance tracking, and overall sales culture. The goal is to reduce conflicts of interest and better protect investors. When advice is shaped by sales pressure, the outcome can be harmful to clients who rely on that guidance to make important financial decisions. Investors deserve advice based on their unique needs, not corporate sales goals.
How Independent Advice Can Help
Unlike the big banks, independent advisors are not tied to promoting any one company’s products. This allows for advice that is tailored to your personal situation. Instead of being pushed toward products that help meet a sales quota, you can receive guidance that is designed around your goals, risk tolerance, and long-term vision. Independence creates the space for transparency, trust, and alignment with your best interests.
When you work with me, the focus is always on you. Our priority is to ensure your needs and goals come first, with no ties to any one company or product.
Sources:
Ontario Securities Commission. “OSC and CIRO Report Highlights Sales Culture Concerns at Canada’s Largest Bank-Affiliated Dealers.” Ontario Securities Commission, 2024, https://www.osc.ca/en/news-events/news/osc-and-ciro-report-highlights-sales-culture-concerns-canadas-largest-bank-affiliated-dealers.
“Bank Reps Under Pressure to Sell, OSC and CIRO.” Investment Executive, 2024, https://www.investmentexecutive.com/news/from-the-regulators/bank-reps-under-pressure-to-sell-osc-and-ciro/.
“Mutual Fund Dealing Survey Suggests Wider Range of Products May Be Beneficial.” Lexpert, 2024, https://www.lexpert.ca/news/finance-law/mutual-fund-dealing-survey-suggests-wider-range-of-products-may-be-beneficial/392961.
