Regulators announce coordinated review into bank branch sales practices

TORONTO – The Ontario Securities Commission (OSC) and the Canadian Investment Regulation Organization (CIRO) announced today a coordinated review into the sales practices within Canadian bank branches.

The review follows a public report of potential investor harm due to alleged high-pressure sales practices for mutual funds at some Canadian banks. The initial phase of the work will seek to build an understanding of the sales culture and environment within Canadian banks, to identify and assess the scale of any potential issues.

This phase of the work is focused on information gathering and will take place over the next few months, and into early 2025. The findings from this will inform any next steps.

If individuals have additional information, or concerns, the OSC’s Whistleblower Program offers protections for individuals who come forward with information about potential violations of Ontario securities law and awards up to $5 million for tips that lead to successful enforcement action. Whistleblower protections are key tenets of the Program. These include protections against reprisals, details of each case are kept strictly confidential, and all reasonable efforts are made to protect a whistleblower’s identity. Visit the OSC’s website to learn more about the Program.

The mandate of the OSC is to provide protection to investors from unfair, improper or fraudulent practices, to foster fair, efficient and competitive capital markets and confidence in the capital markets, to foster capital formation, and to contribute to the stability of the financial system and the reduction of systemic risk. Investors are urged to check the registration of any persons or company offering an investment opportunity and to review the OSC investor materials available at https://www.osc.ca.

The Canadian Investment Regulatory Organization (CIRO) is the national self-regulatory organization that oversees all investment dealers, mutual fund dealers and trading activity on Canada's debt and equity marketplaces. CIRO is committed to the protection of investors, providing efficient and consistent regulation, and building Canadians' trust in financial regulation and the people managing their investments. For more information, visit www.ciro.ca.

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