Ottawa Proposes Ban on Bank Transfer Fees

Draft regulations would prohibit banks from charging fees when investors move accounts to a new institution.

Updated on Nov. 4, 2026 in Investing

Ottawa Proposes Ban on Bank Transfer Fees

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Should banks be banned from charging fees when you switch investment accounts?

The Department of Finance released draft regulations banning bank transfer fees for investment accounts, fulfilling a promise from the 2025 budget. Typical transfer fees are $150, and Finance estimates the ban will save consumers $1.1 million annually.

Why it matters

Wealthsimple CEO Michael Katchen named bank transfer fees his company's biggest obstacle and praised the draft, calling on banks to stop charging them. Finance estimates about 90 per cent of account transfers go to challenger banks, many of which reimburse the fees.

The draft sets a typical bank transfer fee of $150 against an estimated $1.1 million in annual consumer savings, based on a government projection. The regulations have no target date, and it is not yet known when the ban would take effect.

The players

Department of Finance Canada

The federal department responsible for drafting the regulations banning bank transfer fees for investment accounts.

Financial Consumer Agency of Canada

The federal agency charged with enforcing the proposed ban on transfer fees and which has said such fees harm competition.

Michael Katchen

The CEO of Wealthsimple, who praised the draft regulations and named bank transfer fees his company's biggest obstacle.

The details

The draft regulations prohibit banks from charging transfer fees when a customer moves an investment account to a new institution. The Financial Consumer Agency of Canada would be responsible for enforcing the ban, which the agency has said is bad for competition.

2025 budget: the federal government promised to prohibit bank transfer fees.
November 4, 2026: the Department of Finance released the draft regulations.

Market Dynamics

The draft fulfills a commitment made in the 2025 federal budget to prohibit bank transfer fees. It targets a shift already underway, with about 90 per cent of investment account transfers going to challenger banks rather than traditional institutions.

If the ban takes effect, investors moving accounts to a new institution would avoid transfer fees that typically run $150. Investors can compare transfer incentives at challenger banks, many of which already reimburse these fees.

The takeaway

Investors switching institutions should check whether a new provider reimburses transfer fees before moving an account. The rules are still in draft, so current fees may apply until the regulations take effect.