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Email this2:52 pm
March 17, 2018
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Draft regulations to prohibit investment and registered account transfer fees—currently costing an average of $150 per account—are expected by spring 2026.
Right now many people are converting RRSPs to RRIFs early because they don't want to incur 50.00 or higher charges for partial withdrawals from RRSPs. FIs that don't charge this fee include Wealthsimple, EQ Bank, Achieva, Hubert, Oaken, Peoples Trust and Manuife Bank but I wonder if this will force all FIs to allow partial withdrawals in the future. Or maybe this just applies to the fees for transferring out a registered account to another FI ?
I'm curious if anyone knows if the partial withdrawal fee will not be allowed, and if so, will be more likely to keep their money at a different FI or not bother with RRIFs as much after this law is introduced.
3:36 pm
October 27, 2013
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As far as I know, the proposal is only about transfers of investment accounts between institutions, not about partial RRSP withdrawals. There will supposedly be some public consultation about this proposal in the Spring, not actual implementation that quickly. Implementation will no doubt take quite a bit longer I suspect.
4:53 pm
December 18, 2024
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Briguy said
Draft regulations to prohibit investment and registered account transfer fees—currently costing an average of $150 per account—are expected by spring 2026.Right now many people are converting RRSPs to RRIFs early because they don't want to incur 50.00 or higher charges for partial withdrawals from RRSPs. FIs that don't charge this fee include Wealthsimple, EQ Bank, Achieva, Hubert, Oaken, Peoples Trust and Manuife Bank but I wonder if this will force all FIs to allow partial withdrawals in the future. Or maybe this just applies to the fees for transferring out a registered account to another FI ?
I'm curious if anyone knows if the partial withdrawal fee will not be allowed, and if so, will be more likely to keep their money at a different FI or not bother with RRIFs as much after this law is introduced.
Of course I only have RIF in Oaken and Hubert. I always take more than mandatory from a cash account….never from a GIC. No charge. I did pull RRSP from cash from my advisor that used Manulife…no charge.
So are you asking about a partial withdrawal from within a GIC?
5:00 pm
March 17, 2018
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GIC-Fanatic said
Of course I only have RIF in Oaken and Hubert. I always take more than mandatory from a cash account….never from a GIC. No charge. I did pull RRSP from cash from my advisor that used Manulife…no charge.
So are you asking about a partial withdrawal from within a GIC?
Those 3 FIs all have no fee registered account withdrawals or partial withdrawals.
I wasn't thinking of withdrawing from a unmatured GIC in a RRSP, I was thinking of withdrawing from a HISA or from a quarterly cashable GIC in a RRSP. I would expect that no FI would allow you to cash in a GIC before maturation unless it was a cashable GIC , EXCEPT in a RRIF.
5:13 pm
April 6, 2013
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AltaRed said
As far as I know, the proposal is only about transfers of investment accounts between institutions, not about partial RRSP withdrawals. There will supposedly be some public consultation about this proposal in the Spring, …
No review planned.
A federal ban on investment and registered account transfer fees is coming next year. Financial Consumer Agency of Canada asked to report on (not review) bank fees:
To improve choice and lower costs for financial consumers, the government has proposed measures to help Canadians switch between financial institutions and to increase fee transparency:
- Budget 2025 announced that the government intends to publish draft regulations by spring 2026 to prohibit investment and registered account transfer fees, currently costing Canadians on average $150 per account.
- Budget 2025 announced the government’s intention to explore improving the transparency of cross-border transfer fees, including foreign exchange costs, for banks, as non-transparent pricing is causing consumers to pay more than expected to send their money internationally.
- Budget 2025 announced that the government intends to work with banks on ways to simplify the process of switching primary chequing accounts to other Canadian financial institutions.
- The government has requested the Financial Consumer Agency of Canada to prepare a report on the structure, level, and transparency of fees charged by Canadian banks.
5:37 pm
December 12, 2009
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Briguy said
Draft regulations to prohibit investment and registered account transfer fees—currently costing an average of $150 per account—are expected by spring 2026.Right now many people are converting RRSPs to RRIFs early because they don't want to incur 50.00 or higher charges for partial withdrawals from RRSPs. FIs that don't charge this fee include Wealthsimple, EQ Bank, Achieva, Hubert, Oaken, Peoples Trust and Manuife Bank but I wonder if this will force all FIs to allow partial withdrawals in the future. Or maybe this just applies to the fees for transferring out a registered account to another FI ?
I'm curious if anyone knows if the partial withdrawal fee will not be allowed, and if so, will be more likely to keep their money at a different FI or not bother with RRIFs as much after this law is introduced.
It's just registered account transfers, in whole or in part, not registered account withdrawal fees, though those may be included in FCAC's environmental scan survey on banking fees (note this wouldn't include investment account fees from institutions not subject to FCAC jurisdiction).
This is still a big win, though! I would actually think this may cause people to hold off transferring their assets from Big 6 bank owned brokerages until this change is implemented by summer or or fall 2026.
5:42 pm
March 17, 2018
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doug said
It's just registered account transfers, in whole or in part, not registered account withdrawal fees, though those may be included in FCAC's environmental scan survey on banking fees (note this wouldn't include investment account fees from institutions not subject to FCAC jurisdiction).
This is still a big win, though! I would actually think this may cause people to hold off transferring their assets from Big 6 bank owned brokerages until this change is implemented by summer or or fall 2026.
It wouldn't make sense to have free RRSP transfers and not free withdrawals. People could just transfer their full or partial RRSP for free to another FI with free withdrawals and accomplish the same thing with one extra step.
6:34 pm
September 28, 2023
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I so hope this goes through.
Back when I started investing many years ago, I picked Questrade as my brokerage because they had low commissions and could also buy ETFs no charge (perfect for dollar cost averaging). I also put $1k in a RRSP Questwealth portfolio to see how my own choices were doing compared to a robo-advisor.
Once NBDB axed their commissions (sorry QT, you were about 3 years too late to do the same or I woulda stayed) I transferred what I thought was everything over to them, but only my self-directed moved... the little Questwealth stayed, and when I inquired, I was told that I would have to do another transfer to move it over.
So I still have this little bitsy QT account that I don't want to pay $150 to move over (nearly 10% of its value). If the fees get eliminated (or even lowered to a fair $20-50) I would love to consolidate it with my other RRSP, to simplify record keeping, and will probably make things easier at retirement.
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