Canada's largest advocacy group for older adults is publicly condemning the country's major financial institutions for failing to address concerning sales practices within their branches. The Canadian Association of Retired Persons (CARP) says banks are putting profits ahead of clients' financial well-being.
Regulatory Report Reveals Systemic Pressure
The controversy stems from a joint review published in July 2025 by the Ontario Securities Commission (OSC) and the Canadian Investment Regulatory Organization (CIRO). The report was based on a voluntary, anonymous survey of 2,863 mutual fund advisers working in bank branches for five major dealers: Royal Mutual Funds Inc., Scotia Securities Inc., BMO Investments Inc., TD Investment Services Inc., and CIBC Securities Inc.
A key finding revealed that 25 per cent of these advisers stated clients were recommended products or services not in their best interests at least "sometimes." The report concluded that sales pressure is "pervasive" and that performance metrics and scorecards likely influence employee behavior, potentially sidelining investor interests.
CARP CEO Decries Bank Inaction
Anthony Quinn, CEO of CARP, expressed deep frustration after corresponding with the Canadian Bankers Association (CBA). Quinn shared the CBA's response on CARP's website, interpreting it as a defense of the status quo. "The indication, as I read the letter, was that the status quo was satisfactory to the banks," Quinn stated.
In a letter sent to CBA chief executive Anthony Ostler in November, Quinn argued these are "systemic failures that disproportionately harm older Canadians, many of whom have been loyal to the same bank for 50, or even 60-plus years." He believes banks are "not interested" in making necessary changes voluntarily.
Calls for Legislative Intervention Grow
Given the perceived resistance from the banking industry, CARP is now advocating for stronger external pressure. Quinn asserts that meaningful reform will likely require action from regulators and lawmakers. "It’s going to take regulators and likely legislators to make the change because we know just how much influence the banks have on our lives in Canada," he said.
The OSC and CIRO report had urged the five bank-affiliated dealers to carefully consider the survey results, assess how compensation and incentives affect their sales culture, and implement "changes and enhancements" where needed. The review was initially prompted by a 2024 CBC Marketplace investigation into the "enormous sales pressure" faced by bank branch financial advisers.
With CARP taking a public stand, the spotlight is now on whether Canada's major banks will respond to these criticisms or if government intervention will be necessary to protect vulnerable investors, particularly seniors.
