Robo-advisory firm Wealthsimple Financial Inc. says that Canadian investors are waiting approximately three weeks, and paying about $135, to transfer accounts from one investment firm to another.
The Toronto-based firm reports that it examined hundreds of accounts and found that, on average, investors must wait 19 days for an account transfer to take place. In some cases, those account transfers are completed in just five days, while others take almost two months.
“Canadian financial institutions have the technology required to transfer funds out of a client’s account in a timely matter, but they end up dragging their heels,” the firm says.
The account switches cost, on average, $135 in transfer fees, Wealthsimple reports; with some investors paying as much as $150.
As it tries to gather assets, the firm says it will cover new clients’ transfer fees for accounts over $25,000. It also pledges not to charge its own fees to withdraw funds.
“When clients are waiting weeks or months for their funds to transfer, they are losing their hard earned money — they have no control while the funds are out of the market. We think Canadians deserve better. Our team is committed to simplifying the investment process and making investing accessible for every Canadian,” said Michael Katchen, founder and CEO of Wealthsimple, in a news release.