Toronto, June 24, 2025 – A newly released report titled From Compliance to Client Value: Evolving Investment Suitability in Canada, examines how Canadian wealth management firms are implementing investment suitability in response to the Client Focused Reforms (CFRs). The study, conducted by Canada’s Financial Wellness Lab in collaboration with Ortec Finance, provides insights into current industry practices, challenges, and areas for improvement.
The report is based on in-depth interviews with 20 firms across various segments of the Canadian investment industry. It explores how firms interpret suitability regulations, collect client data, and apply risk profiling within investment and financial planning processes.
“Firms are in different stages of adapting to the CFRs,” said Ronald Janssen, Head of Innovation & Research Global Wealth Solutions at Ortec Finance. “Our aim was to better understand how suitability is operationalized today, and what changes could support better client outcomes, efficiency and more effective risk oversight.”
Key findings include:
- Most firms still rely on account-level risk profiling, though 75% consider household-level risk aggregation a preferred future approach.
- Only 40% of firms incorporate goal feasibility into risk assessments, pointing to opportunities for improved alignment between advice and client objectives.
- Manual data collection and limited digitization remain common, especially in KYC and goal tracking processes.
The report identifies opportunities for firms to improve consistency, integration, and digital maturity in their approach to suitability. It also offers comparisons with European practices, where visual tools and outcome-based models are more widely adopted.
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