New banking rules shift power entirely to clients seeking seamless experiences
Canada's new open banking framework arrives with implications for advisory firms, client data access, and competitive positioning in wealth management.
Budget Implementation Bill C-15, tabled in Parliament on November 18, 2025, includes Division 9 of Part 5, which repeals and replaces the Consumer-Driven Banking Act. This legislative overhaul establishes the legal foundation for open banking in Canada, allowing individuals and businesses to securely share their financial data with participating entities of their choice.
For Canadian financial planners and wealth managers, this framework represents a fundamental shift in how client financial information flows within the industry. The new Act addresses critical operational areas including accreditation requirements for participating entities, data sharing protocols, security safeguards, consent mechanisms, authentication standards, liability frameworks, and complaint procedures.
The legislation also tackles screen scraping, the practice of using client credentials to access banking information through third-party platforms. Many advisory firms currently rely on account aggregation tools that use screen scraping to consolidate client holdings across multiple institutions. The new law aims to replace that with standardized, secure data pipes. Clients will grant permission through official channels, and information will flow through accredited platforms.
Advisory firms that wish to access client banking and financial data directly will need to consider whether to pursue accreditation as participating entities under the new regime. This decision carries significant implications for practice management, technology infrastructure, and compliance obligations. Firms that choose not to seek accreditation may need to partner with accredited data aggregators or fintech providers to maintain current service levels.
The legislation lays out ground rules for everything from consent to authentication to liability when things go wrong. If client data leaks or gets misused, someone has to answer for it. The law makes clear that participating entities bear responsibility for safeguards.
From a competitive perspective, the open banking framework may accelerate the entry of technology-focused competitors into wealth management. Fintech firms and robo-advisors can leverage seamless data access to offer streamlined onboarding experiences and real-time portfolio monitoring, potentially raising client expectations across the industry.
The bill also amends the Financial Consumer Agency of Canada Act, signaling that regulators plan to watch this space closely. Expect scrutiny of how firms obtain consent, store data, and handle breaches.
The legislation ties back to last year's Budget Implementation Act, suggesting this rollout has been in the works for a while. Advisory firms should monitor regulatory guidance from the Financial Consumer Agency of Canada regarding timelines, accreditation requirements, and compliance obligations.
For practices that blend wealth management and insurance advice, the implications stretch across both sides of the business. Client financial data doesn't exist in silos anymore. When someone shares banking information with one platform, they might expect seamless integration across all their financial relationships.
The strategic question isn't whether to adapt. It's how fast you can move before clients start asking why your systems feel stuck in 2015.
