Politics · Canada · 4 hrs ago
MP asks Competition Bureau to review banks’ mutual fund dominance
Conservative MP Adam Chambers has asked Canada’s Competition Bureau to review the Big Five banks’ mutual fund practices.
The banks stopped selling outside mutual funds through their branch financial-planning businesses, a change that began around 2021.
They said the move followed rules requiring advisers to know more about the funds they recommend, and planners were left offering their banks’ own products.
Chambers says the banks’ share of mutual fund assets rose from 20 per cent in 2000 to 50 per cent in 2026.
He argues that customers may have fewer investment choices and wants the bureau to consider an investigation, a market study or legal action.
The bureau has not commented, and a similar complaint was filed earlier this year by the Canadian Association of Retired Persons.
The bureau could investigate or take other action if warranted, but it has not announced a decision.
Conservative MP Adam Chambers has asked the Competition Bureau to review the Big Five banks’ growing dominance of Canada’s mutual fund sector.
He says the banks’ decision to stop selling third-party funds has increased their influence and harmed branch customers.
The banks began removing competitors’ funds around 2021, citing new rules requiring advisers to know more about the funds they recommend.
Chambers says the bureau should consider an investigation, market study or legal action if warranted.
The banks’ share of mutual fund assets rose to 50 per cent in 2026 from 20 per cent in 2000, according to Chambers.
- Who
- Conservative MP Adam Chambers is asking the federal Competition Bureau to review the Big Five banks’ role in mutual funds.
- What
- He wants the bureau to examine the effects of the banks stopping sales of third-party mutual funds and consider further action if warranted.
- When
- Chambers sent the letter ahead of the federal budget scheduled for Thursday. The banks began removing competitors’ funds around 2021.
- Where
- Canada.
- Why
- Chambers says the banks’ decision has increased their influence and harmed branch customers. The banks said they acted in response to client-focused reforms.
Adam Chambers
Big Five banks
Aspect
Adam Chambers
Chambers’ view
Big Five banks
Big Five banks’ view
Reason for ending third-party fund sales
Adam Chambers
The move has increased the banks’ influence and harmed branch customers.
Big Five banks
The banks said they made the changes in response to client-focused reforms requiring advisers to know more about the funds they recommend.
Possible response
Adam Chambers
The Competition Bureau should consider an investigation, market study or legal action if warranted.
Big Five banks
Not stated
Royal Bank of Canada, TD and CIBC began notifying some financial-planning clients that advisers would stop selling third-party funds, and other banks later followed.
The Ontario Securities Commission completed an analysis after Ontario Finance Minister Peter Bethlenfalvy called for one.
The Canadian Association of Retired Persons filed a similar complaint with the Competition Bureau, according to the article.
Adam Chambers sent a letter asking the Competition Bureau to review the banks’ role in the mutual fund sector.
- MP
- Adam Chambers, Conservative representative for Simcoe North
- Banks
- Royal Bank of Canada, Toronto-Dominion Bank, Canadian Imperial Bank of Commerce, Bank of Montreal and Bank of Nova Scotia
- Mutual fund market share
- Big Five banks: 50 per cent in 2026, up from 20 per cent in 2000
- Third-party fund sales
- Banks began removing competitors’ mutual funds around 2021
- Earlier complaint
- Canadian Association of Retired Persons filed a similar complaint in January 2026
What people are saying
There is little incentive for the banks to fix this themselves.
All options, no matter how aggressive, should be considered including commencing legal action against the incumbents for anti-competitive conduct and abuse of dominance in their branch networks.