March 2026
CARP has long raised concerns about the barriers older Canadians face when seeking fair, transparent, and independent financial advice.
On March 26, 2026, the Standing Senate Committee on Banking, Commerce and the Economy heard testimony that speaks directly to these concerns.
Particularly, to the exchange between Senators, and two of the leading financial services regulators in Canada, including the Chair of the Canadian Securities Administrators (CSA) and the Chief Executive Officer of the Ontario Securities Commission (OSC). The senators raised serious questions about the conduct of Canada’s major banks following the introduction of the “know your product” rule in 2021.
The discussion focused on the decision by some major banks to restrict the investment products available to their clients, limiting access to independent mutual funds and other competitior products, while favouring their own proprietary funds.
For CARP members, this matters.
Many older Canadians rely on their bank advisors for financial guidance. They deserve to know that the advice they receive is based on their best interests — not on a restricted product shelf, institutional convenience, or the financial interests of the banks.
We invite you to watch their exchange and the unanimous agreement between two Honourable Senators and two of the top Canadian regulators. Their testimony acknowledges and confirms what CARP has been saying: something is clearly wrong when Canadian investors are being offered fewer choices by the very institutions they trust for financial advice.
We encourage CARP members and all concerned Canadians to watch the Senate exchange and add their voices to this important campaign for stronger investor protection.
SenVu:12:04:23
Transcript
Hon. Colin Deacon, Senator, NS
The ‘know your product’ rule introduction in 2021 caused a reflexive response on the part of the big banks to choose to limit their access to products to exclude independent mutual funds and other competitor funds from their list of products that they’re offering.” “What was learned through that because it was really deeply upsetting to see that reflex and the anti-competitive aspect of that?”
Stan Magidson, President, Canadian Securities Administrators
“We at CSA, we’re disappointed to see this reaction of only going to proprietary products at the big banks… we had that negative reaction”
Grant Vingoe, CEO Ontario Securities Commission
“It’s certainly true that… the banks have moved to sell their proprietary fund products to a much greater degree following the adoption of the client focused reforms.”
“The banks really used, to some degree, I think, as a communication mechanism the occasion of the client focused forms to restrict their product shelves. But it was never inherent in the way the client focused reforms operate, that that decision should be made. I too, like Mr. Magidson, am disappointed by the pretext involved in saying that they can only be proficient with their own products, rather than other products from independent fund providers.”
“Even though they are capable of providing the fundamental information to their advisors to impart to their clients, they have withdrawn to a large degree, from offering junior companies securities, I would say not because of the client focused reforms, but their own pecuniary interests and streamlining of their operations.”
Hon. Colin Deacon, Senator, NS
“I observe the same problem”
Committee Chair, Hon. Clément Gignac
“It’s the point, it seems that we have to raise that to the competition bureau, because it sounds that it’s unacceptable practices.”
Canadian investors deserve transparency, fairness, and genuine choice. CARP will continue to advocate for stronger protections to ensure older Canadians can make financial decisions with confidence.
