The Canadian Association of Retired Persons (CARP) used its Day of Action at Queen’s Park on November 24 to raise the issue of self-serving banking practices that are impacting seniors’ investments. CARP President Anthony Quinn framed the issue for the media and Ontario MPPs by saying that seniors rely on in-branch investment advice but, in doing so, are exposed to exploitation driven by a sales culture. 

One in three Canadians saving for retirement relies on advice from bank branches. Yet, a report by the Ontario Securities Commission (OSC) found that: 

• 25% of representatives across banks reported that clients have been recommended products or services that are not in their interests at least “sometimes,” which suggests that product recommendations may not always be in the interests of clients. 
• The vast majority (94%) of representatives report that they are only able to offer clients bank mutual funds (i.e., proprietary mutual funds) and are not able to offer external (i.e., third-party) mutual funds. 
• When asked, “If there were comparable third-party funds available with a similar cost to those available at my bank — but with better performance — it would be in my clients’ best interest to offer these,” more than two-thirds of representatives agreed. 

CARP has already raised these issues with provincial and federal officials as well as highlight them in our most recent federal budget submission.

 

WHAT CARP IS DEMANDING FROM THE BANKS

In response, CARP has sent a letter to the Canadian Bankers Association (CBA), calling on banks to step up and start leading on fairness and transparency for older investors. We’re calling on Canada’s banks to: 

• Adopt a higher fiduciary duty standard for all financial advisors, ensuring that advice provided to clients is always in their best interest, not driven by internal product sales targets. 
• Increase transparency and choice by allowing branch-level advisors to offer non-bank-affiliated investment products, equivalent to the quality of advice and choice offered to higher-net-worth investors at bank-owned wealth divisions. 
• Invest in financial literacy for seniors, including accessible education on investment options, risk management, and retirement planning. 
• Strengthen internal accountability by ensuring that sales practices align with clients’ interests, which should never be secondary to corporate profit goals. 
• Work collaboratively with CARP to establish an industry-wide “Senior Investor Protection Framework” that prioritizes fairness, accessibility, and dignity in financial services for older Canadians. 

You can read the full letter to the Canadian Banker Association on CARP’s website here.

 

CALL TO ACTION

CARP is calling on Ontario’s Minister of Finance to step in and protect seniors from unfair banking and investment practices that put sales targets ahead of their financial security. We are urging the Ontario government to step in to strengthen protections for older investors, shut down harmful sales culture, and ensure advice given at bank branches is truly in the client’s best interest. 

 

As a CARP member, you can help move this forward in under a minute. Using our secure online action tool, you can automatically send a letter to the Minister of Finance, personalized with your name. Add your voice and show the government that seniors are watching. Please visit our campaign with this link:
https://carp.good.do/lettertoministeroffinance/

 

Seniors have trusted their banks with their life savings for decades. CARP is calling on Canada’s banks and governments to step up now, not later, and prove that Canadian seniors are more than just sales targets.

 

For more information on this financial issue, please read our information package “CANADIAN BANKS’ DUTY OF CARE FOR SENIOR INVESTORS”. These packages were also handed to Ontario’s MPPs during CARP’s Day of Action at Queen’s Park.