Proposed rules would mandate automation and real-time tracking to reduce client frustration
Account transfer delays that once dragged on for weeks may soon face a hard cap under a proposed 10-day standard, as CIRO moves to overhaul one of the most persistent operational headaches in Canada’s financial industry.
The Canadian Investment Regulatory Organization (CIRO) has released a white paper alongside proposed rule amendments that would mandate automation for eligible transfers and require dealers to use electronic communications wherever possible.
The amendments would also introduce a timeline for informing clients of transfer impediments and enforce a standard 10-day settlement period—even for transfers with obstacles.
CIRO’s senior vice-president of Strategy, Innovation, and Stakeholder Protection, Alexandra Williams, said “account transfers are consistently a top complaint that CIRO hears from investors and Member firms alike.”
She added that modernizing the system “is an important way by which CIRO can improve investor outcomes and reduce frustration, but also enhance the effectiveness and efficiency of the industry.”
The white paper outlines a phased approach to address these inefficiencies.
Phase 1, released this month, defines the root causes and proposes solutions.
Phase 2, expected in 2026, will provide updates on implementation and broader adoption of the new standards.
CIRO’s paper attributes delays to outdated manual processes, inconsistent practices, and fragmented oversight.
It found that 91 percent of Fundserv transfers in 2024 were still processed manually—up from 86 percent in 2023.
For transfers via ATON, 90 percent took over 15 days to complete, compared to four days or less in the US.
Among the most notable reforms is a call for a fully digitized, interoperable technology platform.
CIRO envisions a real-time system that standardizes data, supports a broad array of asset types, and provides live tracking.
The platform would be designed by a coalition of industry participants and infrastructure providers, including CDS, Fundserv, and CANNEX.
CIRO is now seeking proposals from technology providers to develop the solution, as well as public comments on the proposed rule amendments.
The submission deadline for proposals is September 10, 2025.
The white paper also stresses the cost implications of inefficient transfers, highlighting the administrative burdens caused by manual processes and frequent rework.
In addition, complaint volumes tied to GICs, registered plans, and poor communication have more than doubled since 2020.
The number of investor complaints in the first half of 2025 already exceeds all of 2024.
Firms that do not adopt modern practices, the paper warns, risk damaging client relationships and increasing operational costs.
CIRO’s proposed reforms aim to reduce these risks by mandating automation, setting clear accountability, and streamlining communication across institutions.
