How to Switch Financial Advisors in Ontario Without Losing Money

Switching financial advisors is one of those things that feels more complicated than it actually is. Many Ontarians stay with an advisor far longer than they should simply because they are unsure how the process works — or afraid of what it might cost them. This post walks you through the warning signs that a switch may be warranted, the mechanics of how transfers work, and what to do first.

Signs It May Be Time to Move On

Not every advisory relationship that feels uncomfortable is a bad one. Sometimes difficult conversations are exactly what you need. But there are patterns worth paying attention to.

You have not had a comprehensive review in over a year. A financial advisor who knows your full picture — your income, debts, goals, insurance, estate plan, and investment strategy — should be meeting with you regularly. If months pass and you only hear from your advisor when it is time to renew something, that is worth examining.

You have a collection of products but no financial plan. There is a meaningful difference between an advisor who sells you products and one who builds a strategy around your life. If you cannot articulate what your plan actually is — because no one has ever sat down with you to create one — that is a gap.

Communication has been poor or one-sided. You should feel comfortable asking questions and getting clear, jargon-free answers. If you feel like you are bothering your advisor, or if calls go unreturned, that dynamic rarely improves on its own.

You have experienced a major life change and nothing has changed in your portfolio. A divorce, inheritance, business sale, or retirement changes almost everything about your financial picture. If your advisor has not proactively reached out to reassess, it may be time to find one who will.

How Transfers Work in Practice

The most common fear about switching is that it will cost money. Sometimes it does — but the process is more manageable than most people expect.

In-kind transfers. When you move accounts from one institution to another, you usually do not have to sell your investments first. An in-kind transfer moves the actual securities — mutual funds, stocks, ETFs — over to the new account. This avoids triggering capital gains unnecessarily. Ask your new advisor specifically about this option.

Watch for deferred sales charges (DSCs). Some older mutual funds were sold with DSC structures, meaning you pay a penalty if you redeem within a certain number of years. If your holdings include DSC funds, your new advisor can help you understand when the charges expire and whether it makes sense to wait, pay the fee, or transfer in-kind where possible. DSC funds were banned for new purchases in Canada as of June 2022 — but existing holdings with trailing schedules may still be in force.

Account transfer fees. Most financial institutions charge a fee — typically between $50 and $150 per account — to transfer out. Your new advisor or institution may offer to reimburse this as part of bringing you on as a client. It is worth asking.

Tax-registered accounts (RRSP, TFSA, RRIF, RESP). Transfers of registered accounts between institutions are generally processed as direct transfers, meaning there is no tax event triggered. Your new institution initiates the transfer paperwork. This process typically takes two to four weeks.

What to Do Before You Leave

Do not cancel your current advisor relationship before you have a new one in place. The process goes more smoothly when your new advisor initiates the transfer on your behalf.

Start by getting copies of your current account statements and any financial plan documents you have been given. Understanding exactly what you hold — and what it costs — puts you in a stronger position when evaluating your next relationship.

If you have investments inside employer group plans or pension arrangements, those typically cannot be transferred the same way as personal or individual accounts. Get clarity on what can move and what cannot before you commit to anything.

Finding a Replacement

Look for a financial planner who holds a recognized designation — a financial planner is the most widely recognized in Canada. Ask how they are compensated, whether they provide a written financial plan, and how frequently they will meet with you. A good advisor will encourage these questions.

Working With Marc Pineault at Pineault Wealth Management

Marc Pineault works with clients across southwestern Ontario who are in the process of evaluating or making a change in their financial advisory relationship. If you are frustrated by a lack of planning, poor communication, or simply feel your current relationship is not working, Marc offers an initial conversation to understand your situation before any commitment is made.

Reach out to Marc at Pineault Wealth Management to start the conversation.

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This article is for educational purposes only and does not constitute personalized financial advice. Please consult a qualified financial planner before making any financial decisions.