Shocking Findings: Bank Reps Under Pressure to Sell

Jul 10, 2025

A joint review by the Ontario Securities Commission (OSC) and the Canadian Investment Regulatory Organization (CIRO) has exposed a troubling culture of sales pressure at bank-owned investment dealers. The findings, released in July 2025, paint a concerning picture of how compensation structures and performance expectations at major financial institutions are driving advisors to prioritize product sales over client interests.

The review focused on six major bank-affiliated firms and revealed that while policies may claim to support client-first advice, actual practices often diverge. Many advisors reported that their day-to-day responsibilities were influenced more by sales targets than by personalized financial planning. This disconnect risks undermining public trust in Canada’s financial advisory system and could lead to unsuitable recommendations for retail investors.

The report builds on concerns first raised in the 2021 Mutual Fund Fee Structure Review. In that earlier study, regulators identified compensation conflicts as a root cause of biased advice. This latest 2025 report not only reaffirms those concerns but adds evidence that the pressures remain widespread. In particular, OSC and CIRO found that branch managers often evaluate advisors based on asset growth or product sales—metrics that do not necessarily reflect client outcomes.

2,900 Bank-Based Reps Surveyed

A voluntary, anonymous survey of nearly 2,900 mutual fund reps across the Big Five (BMO, CIBC, RBC, Scotiabank, TD) reveals:

  • 40% feel sales-scorecards influence what they recommend

  • 33% admit clients sometimes receive incorrect guidance

  • 25% said they’ve recommended unsuitable products

Sales Metrics Trump Advice Quality

Over 30% of reps confirmed that their compensation is tied more to sales volume than to advice quality. Meeting sales targets often outweighs long-term client care.

“Scorecards… increase pressure to meet sales targets, influencing product recommendations,” say regulators.

Longstanding Issue Needs Urgent Reform

Investor advocates like FAIR Canada reacted strongly. Executive director JP Bureaud noted,

“Sales pressure and conflicted pay structures are still deeply embedded… investors are paying the price.” 

Research dating back to the 1990s has chronicled similar patterns. In 2002, a CIBC branch rep lamented, “Sales targets are getting impossible.” Ontario’s regulators have flagged similar issues in 2016, 2021, and as recently as this study.

Regulators Demand Action on Compensation and Culture

Regulators Demand Action on Compensation and Culture

OSC’s Sonny Randhawa stated that this survey is part of a new proactive approach by regulators to identify risks and respond before client harm occurs. Investment Executive

OSC and CIRO now expect banks to review compensation models, rebalance performance metrics, and reduce sales focus in advice culture. They plan follow-up meetings and data collection focused on scorecard structures and conflict controls.

Industry Response: Promises and Skepticism

The Canadian Bankers Association says banks remain client-focused and welcome regulator collaboration. However, FAIR Canada argues that clear cultural changes must follow.

“Canadians want advice that puts their interests first—not products packaged as advice,” Bureaud said.

Final Takeaway: Culture Over Compliance

Regulatory oversight has shifted to whether internal incentives align with client-first advice, not just meeting rules. For banks, the key test will be whether they transform internal culture and compensation, rather than tweak compliance checkboxes.

For clients, this report is a reminder to be aware of your advisor’s motivations—ask how they’re evaluated and what drives their product recommendations.

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