Canadians are losing millions each year over a little-known charge
Wealthsimple Technologies Inc. is pressing the federal government to regulate transfer fees on registered accounts, saying Canadians should be free to move their money without being penalized.
In its submission to the 2025 federal pre-budget consultation, the Toronto-based fintech said exit fees for moving registered accounts such as Tax-Free Savings Accounts (TFSA) and Registered Retirement Savings Plans (RRSP) have climbed from as low as $0–$75 in the early 2010s to nearly $150 per account today.
“Canadians should be in control of their money,” Jessica Oliver, head of government and regulatory relations at Wealthsimple, told BNN Bloomberg on Wednesday. “They should have the autonomy to move their money where they want.”
Wealthsimple said these charges cost Canadians hundreds of millions of dollars each year and disproportionately affect younger investors. The company estimates its clients alone have paid nearly $30 million in transfer fees to move savings to its platform. To help offset the expense, Wealthsimple reimburses some of the fees.
“Wealthsimple reimburses transfer fees for accounts that are $25,000 or higher,” said Oliver.
Calls for government action
The firm asked the Financial Consumer Agency of Canada (FCAC) to audit compliance with transfer standards and strengthen protections if current rules fall short. It also called on Ottawa to amend the Income Tax Act to contain “spiralling and exploitative” exit fees.
According to its submission, between late 2024 and early 2025, the average registered account transfer to Wealthsimple took 19 days, with more than 13,000 transfers delayed beyond 45 days. Fees collected during that period exceeded $35 million.
Wealthsimple argued that delays benefit large financial institutions because client assets temporarily sit on their balance sheets, allowing them to generate profit without passing benefits to investors.
Seeking reform
Survey results released by Wealthsimple and Pollara show public support for reform. Two-thirds of Canadians said it is unfair for institutions to charge transfer fees on registered accounts. When told the average fee is $150, that number grew higher. More than three-quarters of respondents said Ottawa should eliminate the charges and compensate clients for delays.
One in four Canadians under 40 reported being discouraged from transferring accounts because of the cost. With the average TFSA balance for that age group at $8,000, a $150 exit fee amounts to nearly 2% of their savings.
Wealthsimple, which manages more than $80 billion in assets for three million clients, said it does not charge customers who choose to leave its platform. “There is no reason why financial institutions should be permitted to levy high, hidden exit fees,” the company wrote in its submission.
The federal budget is scheduled for release on Nov. 4.
