Overregulation May Be Limiting Canadians’ Access to Financial Advice. Here’s What We Can Do

October 7, 2025 – With about one in three now turning to online influencers for investment decisions, fragmented regulation and rising costs may be pricing Canadians out of direct access to personal financial advisors, according to a new report from the C.D. Howe Institute.

In “Regulatory Reset: A Policy Roadmap for Expanding Financial Advice to Middle- and Lower-Income Canadians,” Gary Edwards warns of an emerging “advice gap”, where low- and middle-income Canadians are increasingly left without access to affordable, personalized guidance. Edwards stresses this is not just a household issue, but a macroeconomic risk: without accessible advice, capital is less efficiently allocated, limiting productivity and economic growth.

“While online do-it-yourself channels have entered Canada’s financial services ecosystem, advisors remain an essential bridge between financial complexity and real-life inclusion, especially for modest-income families who are most at risk of being underserved,” said Edwards, co-founder of Golfdale Consulting.

The report finds that many Canadians are being left behind as advisors serving smaller accounts disappear, with many firms now requiring at least $100,000 in investable assets. These high minimums – along with planning fees and the prioritization of wealthier clients – are shutting out households with modest savings. These pressures are compounded by a mounting regulatory burden. Since 2008, financial services have faced one of the steepest increases in regulation across all sectors. While reforms have improved transparency and avoided harsher measures such as the UK’s commission bans, transparency alone is insufficient, and Canada still lacks the coordinated modernization efforts seen in the US, UK, and Australia.

“If Canadians have $10,000 in investments, they most probably also have that in credit-card debt,” Edwards noted. “Financial advice helps them think more about their future and nudges them toward healthier financial decisions. That’s why regulations need to support business models that allow better access to advice.”

The report calls for a smarter regulatory framework that balances consumer protection with inclusion and competitiveness. Edwards argues for reducing the overall regulatory burden, requiring independent and transparent cost–benefit reviews on major new rules, and strengthening oversight of regulators through audits and published data. He further recommends stronger coordination across jurisdictions, including expanding mutual-recognition frameworks for provincial rules and better alignment with global best practices.

Read the Full Report

For more information, contact: Gary Edwards, Co-Founder and Principal, Golfdale Consulting; and Raquel Schneider, Communications Officer, C.D. Howe Institute, 647-805-3918, rschneider@cdhowe.org.

The C.D. Howe Institute is an independent not-for-profit research institute whose mission is to raise living standards by fostering economically sound public policies. Widely considered to be Canada’s most influential think tank, the Institute is a trusted source of essential policy intelligence, distinguished by research that is nonpartisan, evidence-based and subject to definitive expert review.

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