Amid soaring complaints from investors about the time and expense involved in switching dealers, the Canadian Investment Regulatory Organization (CIRO) is proposing rule changes aimed at fully automating the process. It’s also calling for the development of an industry-wide technological solution to the problem.
In a new white paper, the industry self-regulatory organization examines the long-standing issue of costly, inefficient account transfers in the investment industry — a problem that can harm investors and inhibit competition in the sector.
According to the paper, investor complaints about the issue are soaring.
In 2024, CIRO received more than 500 complaints about account transfers — the highest level in a decade. At the mid-point of 2025, the volume of complaints had already exceeded last year’s total. The Ombudsman for Banking Services and Investments (OBSI) is also seeing a large volume of complaints about the account transfer process, it noted.
“Data from both organizations shows an increasing number of complaints and inquiries from investors highlighting the persistent and growing frustration with account transfer delays in Canada,” the paper said.
While the account transfer process has long been a source of frustration for investors, the paper suggests the problem has become more acute in the past few years as investor expectations have evolved amid the growing prevalence of online and mobile trading.
Certain areas of the business — such as trading, account onboarding and investor reporting — have kept up with investor expectations, but the industry’s account transfer process has not, which threatens to reduce investors’ trust in the industry generally, it suggested.
“Firms unable to deliver efficient transfers risk damaging client trust, their reputation and client relationships,” the paper noted.
Among other things, delayed transfers can inflict opportunity costs on investors, disrupt financial planning, and result in other unwelcome tax and financial consequences.
According to the paper, the underlying causes of account transfer issues include outdated processes, inconsistent standards and fragmented communication.
As a result, fixing the problem will also require a multi-faceted approach, it said, including increased automation, standardization and rule harmonization.
CIRO sets out a series of proposed rule changes to address the regulatory side of the problem — changes that would require dealers to adopt automated transfer processes, impose a 10-day deadline for transfers and set communication requirements for firms.
At the same time, it’s also seeking a comprehensive technological solution for the industry overall “that would digitize the account transfer process and allow for real-time processing and standardized data formats.”
To that end, the SRO is calling for proposals from fintech companies to develop this kind of system in cooperation with industry firms and regulators. The aim is to implement the system by the end of 2026.
“The guiding principles emphasize digitization, real-time processing and standardized data formats to eliminate outdated processes such as faxes, physical signatures and cheques,” it said. The regulator added that this will also require cooperation from the industry to integrate their own procedures with a new system.
This sort of development, if it succeeds, would not only speed up transfers and potentially eliminate a major source of investor frustration, it could also provide a basis for industry innovation. The digitization of transfers would generate data for firms that would enable them to “innovate on client experiences, as well as to drive operational efficiencies,” the paper suggested.
CIRO indicated that it expects to publish a second paper in 2026 providing an update on its progress toward this vision of fast, efficient account transfers.