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The Department of Finance released draft regulations that would make good on a promise in the 2025 budget to prohibit banks from charging money, typically $150, when a customer transfers an investment account to a new institution. (The Logic)
Talking point: In an interview with The Logic last week, Wealthsimple CEO Michael Katchen named bank transfer fees as his company’s number 1 biggest obstacle. Finance estimates about 90 per cent of investment account transfers go to challenger banks like Wealthsimple, many of which reimburse the fees banks charge their new customers. Banning bank transfer fees will save consumers an estimated $1.1 million annually, according to Finance’s analysis. The Financial Consumer Agency of Canada, which has said transfer fees are bad for competition, is charged with enforcing the ban. The draft regulations don’t include a target date for coming into force. Katchen trumpeted the news on LinkedIn, calling on banks to immediately “stop charging these junk fees and end this tax on choice.”
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