Examining Knowledge Gaps and Ethical Standards in Financial Advisory

In this episode, Ben Felix and Cameron Passmore take a critical look at the Canadian banking system's mutual fund advice model. A newly released study by the Ontario Securities Commission (OSC) and the Canadian Investment Regulatory Organization (CIRO) confirms what many already suspected: Canadian bank branches aren't in the business of giving impartial advice—they're selling financial products. Ben breaks down the implications of this study, which surveyed nearly 3,000 bank-affiliated mutual fund representatives, uncovering troubling statistics about sales pressure, lack of credentials, misaligned incentives, and poor client outcomes. From limited product shelves and high-fee mutual funds to representatives with minimal financial education, the findings expose systemic flaws in the bank advice model. The second half of the episode is a conversation with Connor and Taylor Hewson, who recently joined PWL Capital after operating their own multigenerational advisory firm. They reflect on the decision-making process, their practice's evolution, and how joining PWL aligned with their mission to deliver better, evidence-based advice to clients. Their story illustrates the professionalization of financial advice in Canada and what's possible when advisors choose client outcomes over product sales.

Key Points From This Episode:

(0:02:33) Introducing Connor and Taylor Hewson and their firm's integration with PWL Capital.

(0:03:55) Why Canadians' loyalty to banks puts them at risk of poor financial advice.

(0:06:22) Bank branch "advisors" often lack credentials and act as commissioned salespeople.

(0:08:08) Overview of CBC's 2024 investigation into bank sales practices.

(0:10:11) The OSC and CIRO's comprehensive 2024 survey of bank mutual fund reps.

(0:11:47) One-third of bank reps agree their pay structure prioritizes sales over advice.

(0:13:17) 35% of reps experience sales pressure "often" or "always."

(0:16:32) Almost half of bank reps believe clients would benefit from non-bank products.

(0:18:52) A shocking 23% of reps couldn't define "MER"—a key mutual fund concept.

(0:21:03) Advisors often make the same poor investing choices as their clients.

(0:23:55) Why credentials like CFP and CFA—and firms that support them—matter.

(0:26:18) How PWL Capital's structure addresses the problems with bank advice.

(0:27:43) Taylor and Connor's journey from family firm to joining PWL.

(0:31:18) Why they shifted from resistance to excitement about the acquisition.

(0:35:46) Letting go of the need to "do everything" and focusing on client relationships.

(0:40:06) How clients reacted to the transition—and the surprising questions they asked.

(0:42:40) What they'd tell other advisors considering a move to PWL.

(0:44:41) Building the future of advice by creating a true apprenticeship model.

(0:52:12) Why advice—not just products—should be the center of financial services.

Links From Today's Episode: Meet with PWL Capital: https://calendly.com/d/3vm-t2j-h3p

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.

Rational Reminder Website — https://rationalreminder.ca/

Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on X — https://x.com/RationalRemind

Rational Reminder on TikTok — www.tiktok.com/@rationalreminder

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — info@rationalreminder.ca

Benjamin Felix — https://pwlcapital.com/our-team/

Benjamin on X — https://x.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Cameron Passmore — https://pwlcapital.com/our-team/

Cameron on X — https://x.com/CameronPassmore

Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)