WEALTH MANAGEMENT

As Canada enters 2025-2026, wealth management is at a pivotal juncture. The post-rate-hike environment, combined with persistent inflation and ongoing economic volatility, has reshaped household balance sheets and investor priorities. At the same time, technology acceleration (e.g., digital advice platforms, AI-driven portfolio tools, and online engagement channels) is redefining how clients access and interact with financial services.

For both advisors and individual investors, these forces create opportunities and challenges. Clients increasingly expect personalized, transparent, and digitally accessible advice, while institutions must navigate evolving regulatory scrutiny, fee pressures, and competitive product innovation.

In this article, we examine the Canadian wealth management landscape through a data-driven lens. Readers will gain insights into changing client expectations, emerging investment products, fee transparency trends, intergenerational wealth transfer, Environmental Social Governance (ESG) integration, and the importance of trust in the digital era, equipping both advisors and investors to make informed, forward-looking decisions.

The State of Canadian Household Wealth

Canadian household wealth remains extraordinarily concentrated, and the latest data reinforces how this concentration is influencing the broader wealth-management landscape in 2025-2026.

Wealth Distribution and Concentration

According to Statistics Canada, the top 20% of households controlled 64.8% of Canada’s total net worth in Q2 2025, while the bottom 40% held just 3.3%, with an average net worth of approximately $3.4 million for the top quintile and only $86,900 for the lower forty percent.

Parliamentary Budget Officer (PBO) data deepens the picture: the top 1% of Canadian economic families (about 169,400 households) own nearly 24% of the country’s net wealth, while the top 20% control nearly 69%.

These concentrations highlight that wealth gains are accruing heavily to a relatively narrow slice of the population.

Household Assets, Debt, and Real Estate

In Q2 2025, total household net worth climbed to about $17.9 trillion, driven largely by strong financial-asset performance, even as real estate values declined slightly.

Meanwhile, household debt remains elevated: although the debt-servicing ratio came in at 14.4% in Q2 2025 (slightly below 2023’s peak), it suggests that debt obligations remain stressful for many, particularly as fixed-rate mortgage renewals reset at higher rates.

Taken together, this means that while financial asset gains have ballooned, real estate, a traditional wealth store, is not growing as fast, and many households are burdened with high leverage.

Generational and Policy Implications

This widening chasm in net worth has several implications. Wealth firms are increasingly focused on high-net-worth (HNW) and ultra-high-net-worth (UHNW) clients, as they capture disproportionate asset growth. At the same time, policymakers may feel renewed pressure to propose reforms to taxes, intergenerational wealth transfer, and estate planning, particularly as high concentrations of wealth fuel debates about inequality and access.

For wealth managers, the data underscores two parallel trends: more resources flowing into sophisticated wealth-management services, and increased demand for equitable, scalable advice that can reach the less affluent majority. Building solutions across that spectrum could define the wealth management industry’s next chapter.

How Client Needs and Expectations Are Changing

Canadian investors are redefining what they want from wealth management in 2025-2026. One major shift is the rise of hybrid advisory business models, blending digital tools with human guidance. Clients increasingly expect 24/7 access to portfolio updates, analytics, and reporting, while still valuing the expertise of advisors for complex decisions such as estate planning or tax optimization.

Transparency and fee awareness have become non-negotiable. According to the Ontario Securities Commission (OSC) 2024 Investor Index, Canadians are scrutinizing management expense ratios (MERs) and actively comparing ETFs and mutual funds for value. Many investors now expect clear, itemized fees and real-time insight into how costs impact net returns.

Loyalty to a single firm is declining. Modern investors often maintain relationships with multiple providers to access specialized products, digital platforms, or lower-cost solutions. Younger cohorts, e.g., Gen X and Millennials, show the strongest adoption of this multi-provider approach, leveraging robo advisors, online brokerages, and traditional advisory services in combination.

Finally, these clients are more tech-savvy and socially conscious, seeking ESG-aligned investments and personalized guidance that aligns with long-term goals. Asset managers must adapt to a client base that values flexibility, transparency, and control, while still needing expert guidance to navigate market complexity and tax optimization. Meeting these expectations is no longer optional; it’s a core driver of client retention and competitive advantage.

Fees, Value, and Transparency in 2025

In 2025, Canadian investors continue to push wealth management firms toward greater fee transparency and demonstrable value. Over the past decade, the average asset-weighted mutual fund MER in Canada fell from 2.06% in 2013 to 1.47% in 2023, while ETFs averaged just 0.32% globally. This ongoing pressure has accelerated the adoption of fee-for-service and flat-fee advisory models, particularly for clients seeking clarity and predictability in costs.

Regulatory updates, including CRM2 reporting requirements and Canadian Investment Regulatory Organization (CIRO) survey insights, reinforce disclosure expectations. Investors now receive more detailed breakdowns of fees, trade costs, and performance attribution, making it easier to evaluate a firm’s value proposition beyond headline returns.

Firms are responding by emphasizing holistic value: financial planning, tax efficiency, estate guidance, and behavioral coaching are positioned alongside portfolio performance. This narrative helps differentiate service providers in a crowded marketplace, especially for clients who are fee-sensitive but still expect high-quality advice.

Ultimately, transparent pricing and clear communication have become competitive necessities. Firms that can quantify both costs and value, while leveraging digital tools for reporting, will better meet client expectations, build trust, and retain assets in a landscape where fee-consciousness is now standard rather than optional.

Personalization at Scale with AI: What’s Real

Artificial intelligence is increasingly shaping how Canadian wealth managers personalize client experiences, but it’s important to separate hype from practical application.

Real-World AI Uses

• Segmentation & Profiling: AI analyzes client demographics, risk tolerance, and behaviour to identify segments for tailored advice.
• Portfolio Optimization: Machine learning models can suggest asset mixes based on historical performance, volatility, and client goals.
• Content Personalization: Automated reporting, educational materials, and portfolio insights are customized for individual clients or segments.

What’s Marketing vs. Reality

While headlines promise fully autonomous wealth management, most AI use today remains compliance-approved and supervised. Advisors must ensure:

• Recommendations meet suitability requirements.
• Client data privacy and security standards are maintained.
• Algorithms are regularly audited for bias or unintended outcomes.

Regulatory & Ethical Considerations

Canadian regulators stress that AI cannot replace fiduciary oversight. Key challenges include:

• Ensuring algorithmic transparency.
• Mitigating data bias that could affect investment advice.
• Complying with personal information protection laws.

Looking Ahead: Human-in-the-Loop

The future points toward hybrid models where AI generates insights and advisors provide judgment, context, and emotional intelligence. This approach:

• Increases efficiency without compromising fiduciary responsibility.
• Helps advisors deliver personalized solutions at scale.
• Balances automation benefits with regulatory and ethical safeguards.

In short, AI in Canadian wealth management is real, but it’s augmenting human expertise, not replacing it. Firms that combine smart algorithms with strong advisory oversight are likely to win client trust in 2025-2026.

The Product Shift

Canadian investors are seeing a notable evolution in product offerings as wealth management adapts to 2025-2026 market realities.

Alternative Growth Opportunities

• Private Credit & Infrastructure: Institutional and HNW clients increasingly access private lending and real assets, offering higher yields and diversification outside public markets.
• Buffered/Structured Products: Designed to provide downside protection with upside participation, these products are often utilized in strategies focused on capital preservation and predictable outcomes.

Cash & Yield Solutions

Following the 2024-2025 interest rate hikes, cash and short-term fixed-income alternatives have become a core allocation, rather than purely defensive instruments. Investors can now earn meaningful returns from high-quality liquid assets while maintaining flexibility for withdrawals or opportunistic investments.

ETF Innovation & Fractional Access

• Exchange-traded funds (ETFs) continue to dominate due to cost efficiency and transparency.
• Fractional shares and micro-ETFs allow smaller investors to access diversified or niche strategies previously limited to institutional or HNW clients.
• Smart beta and factor-based ETFs provide targeted exposure without requiring active stock selection.

Retail vs HNW Implications

• Retail investors benefit from increased ETF innovation, fractional access, and structured products tailored for risk-managed growth.
• HNW and ultra-HNW clients continue to leverage private credit, infrastructure, and customized solutions for yield, tax efficiency, and portfolio diversification.

Key Takeaways

The product shift signals that asset managers must blend traditional and alternative solutions while considering client risk, liquidity needs, and portfolio objectives. Retail clients can now access strategies once reserved for the wealthy, while HNW clients seek increasingly bespoke offerings. Successful advisors will balance innovative products with prudent risk management, ensuring allocations reflect both client goals and evolving macroeconomic conditions.

This transformation illustrates how product innovation in Canada is democratizing access while maintaining tailored solutions for diverse client segments.

The Great Wealth Transfer in Canada

Canada is entering a historic period of intergenerational wealth transfer, with an estimated $1 trillion expected to move between generations between 2016 and 2026. The scale and timing of these transfers present both opportunities and challenges for investors and wealth management firms.

Timing & Scale

The majority of wealth is concentrated in the top 20% of households, meaning significant capital will flow from older, high-net-worth Canadians to younger generations in the next few years.

The pace is accelerating as boomers and older Gen X begin retirement, creating immediate demand for estate planning, trusts, and tax-efficient transfer strategies.

Next-Generation Preferences

Younger heirs often prioritize ESG and impact investing, digital-first advisory access, and transparent, fee-conscious advice.

Many prefer hybrid advisory models (digital convenience paired with selective human guidance) over traditional in-person-only relationships.

Family Governance & Planning

Effective wealth transfer requires structured governance, including family councils, education on financial literacy, and clear inheritance protocols.

Wealth managers play a critical role in tax-efficient strategies, gifting structures, and succession planning to maintain family harmony and preserve capital across generations.

Retaining Next-Gen Clients

Firms that engage heirs early, offer technology-driven solutions, and incorporate values-aligned investments are more likely to retain wealth across multiple generations.

Tailored communication and demonstrated competency in both traditional and modern investments strengthen trust and loyalty.

Emerging Risks and Opportunities

The Canadian wealth transfer represents both a risk and an opportunity. Firms that adapt to next-generation expectations, e.g., by combining governance, digital innovation, and ESG-conscious offerings, will be positioned to capture long-term client relationships while supporting efficient and thoughtful wealth succession.

This multi-trillion-dollar transfer underscores the importance of proactive planning, education, and personalized advisory in Canada’s evolving wealth landscape.

ESG 2.0: From Labels to Outcomes

Environmental, social, and governance (ESG) investing is entering a new phase, ESG 2.0, where the focus shifts from simple screening to measurable outcomes and transition finance. Investors increasingly demand evidence that their capital contributes to real-world change, whether it’s reducing carbon emissions, supporting social initiatives, or promoting sustainable corporate governance.

Measuring Impact

• Traditional ESG often relied on exclusionary screens (e.g., avoiding fossil fuels).
• ESG 2.0 emphasizes quantifiable results, including carbon intensity reductions, renewable energy deployment, and social impact metrics.
• Transition finance (funding companies moving toward sustainable operations) is gaining traction as a practical ESG strategy.

Regulatory Landscape in Canada

• Canadian regulators are tightening disclosure requirements. Firms must now report ESG-aligned product methodologies, outcomes, and risks.
• Advisors face scrutiny around claims of sustainability and must ensure client portfolios can withstand regulatory due diligence.

Addressing Greenwashing Fatigue

• Clients are increasingly skeptical of ESG labels without tangible results.
• Advisors can build trust by focusing on transparent metrics, independent verification, and clear reporting.
• Communicating progress, not just intent, helps investors understand how their wealth contributes to sustainability goals.

ESG 2.0 moves beyond marketing labels to measurable, accountable investing. Wealth managers who integrate impact assessment, regulatory compliance, and transparent client reporting will be best positioned to meet growing demand for credible, outcomes-focused ESG solutions in Canada.

Operating Models & Advisor Productivity

Canadian wealth management is undergoing a structural shift in how financial advisors operate, driven by AI, automation, and new service delivery models. Firms are increasingly leveraging technology to boost efficiency, reduce costs, and free advisors to focus on client relationships.

AI and Automation

• Back-office automation now handles tasks like portfolio rebalancing, reporting, and compliance monitoring.
• AI-driven alerts flag unusual transactions, regulatory deadlines, or client behavior patterns.
• This reduces manual work, minimizes errors, and ensures wealth managers spend less time on administrative tasks.

Managed Financial Services Platforms

• Firms are adopting managed service models, where investment research, model client portfolios, and risk management are centrally provided.
• These models scale expertise, improve consistency, and reduce operational risk.

Financial Advisors Time Allocation

• Technology allows advisors to shift time from admin to high-value activities: financial planning, client education, and relationship management.
• Hybrid models, combining human advisors with AI support, enable more personalized client service at scale.
• Firms track productivity metrics such as client-facing hours, portfolio review frequency, and response time, helping measure value delivered.

Overall, the combination of automation, centralized investment services, and AI-driven insights is transforming the advisor role. Success in 2025-2026 depends on leveraging technology to enhance client engagement while maintaining regulatory compliance and operational efficiency.

Trust in the Era of Digital Transformation

As Canadian investors increasingly turn to online platforms, social media, and “finfluencers” for guidance, trust has become a central challenge for wealth management firms. Misinformation and biased advice can erode confidence, particularly among younger, digitally native investors.

Transparency and Disclosure

• Full disclosure of fees, conflicts of interest, and product risks is now table stakes.
• Regulators, including the OSC and CIRO, are emphasizing data ethics, client privacy, and suitability standards.
• Wealth managers and firms must ensure that digital tools comply with regulatory guidance while providing accurate, reliable insights.

Rebuilding Confidence

• Educational content, such as articles, webinars, and interactive tools, helps clients distinguish credible advice from hype.
• Verified and compliance-approved digital communications reduce the risk of misinterpretation.
• Firms are leveraging AI and analytics to detect unusual online behavior or misinformation trends, proactively safeguarding client interests.

Trust in the digital era is not only about transparency but also about consistent, accurate, and client-centered communication. Wealth managers who combine ethical digital practices with human oversight are best positioned to retain clients and maintain credibility in a landscape saturated with information.

Bottom line: In 2025-2026, building trust digitally requires a blend of robust disclosure, educational outreach, and responsible technology use, ensuring clients feel informed, protected, and confident in their financial decisions.

Areas of Focus for Investors

As wealth-management trends evolve in Canada, the following eight areas represent practical steps and considerations frequently observed among investors seeking to build resilient portfolios.

1. Conducting a Fee Audit

Given the continuing pressure on fees (average mutual fund MERs have fallen from 2.06% to 1.47% in the last decade, and ETFs hover around 0.32%), a review of all account costs is often observed. Individuals may examine statements or consult with advisors to identify products with higher expenses and consider lower-cost alternatives. This type of change can potentially influence long-term portfolio outcomes.

2. Diversifying Digital Assets with Purpose

A review of asset allocation is often performed to reflect the evolving product landscape. This may involve incorporating larger roles for asset classes such as private credit, infrastructure, buffered products, and high-yield cash alternatives. Even retail investors may access sophisticated exposures through hybrid and fractional-ETF structures.

3. Upgrading Digital Literacy

With AI-driven tools and digital platforms playing a larger role in advisory business models, understanding their functionality is a common focus. Investors may inquire about the role of AI in portfolio optimization or risk monitoring, and whether human oversight is in place to address potential algorithmic errors or biases.

4. Strengthening Family Wealth Planning

With an estimated $1 trillion transferring between generations between 2016 and 2026, engaging in comprehensive estate planning is frequently observed. This process often includes developing a governance plan, naming successor annuitants, and involving younger family members in discussions to support the efficient and values-aligned transfer of wealth.

5. Prioritizing ESG That Demonstrates Impact

A move away from generic ESG labels is common. Instead, the focus may be placed on funds or strategies with measurable outcomes, such as transition finance or verified impact metrics. Investors may request regular ESG reporting and independent verification to support authenticity.

6. Building Trust Through Education

In a world of finfluencers and misinformation, seeking counsel from licensed professionals is often prioritized. Verified, regulation-checked content is utilized to inform decisions. A focus may be placed on confirming that any digital advice followed is supported by transparency, clear disclosures, and suitability standards.

7. Conducting Regular Portfolio Check-ins

Portfolios can be rebalanced, often on an annual basis, to help maintain alignment with investment goals and risk tolerance. New contributions or withdrawals are frequently utilized to restore balance rather than solely relying on the sale of existing assets.

8. Staying Informed About Regulation

Regulatory bodies like CIRO and the OSC are engaged in updating requirements, particularly concerning fees, AI, and ESG. Keeping informed about these regulatory changes may assist investors in identifying areas of concern, asking relevant questions, and supporting the compliant and ethical nature of their investments.

By implementing these steps, investors can position themselves to benefit from evolving wealth-management trends while protecting from cost creep, digital risk, and intergenerational planning pitfalls.

What Wealth Management Firms and Financial Advisors Should Do Now

As Canada’s wealth-management landscape evolves in 2025, wealth management firms and advisors must act proactively to stay competitive, compliant, and client-focused. Here are seven essential steps:

1. Ensure Compliance Readiness

Review policies and procedures in line with CIRO and OSC guidance for 2025, particularly around fees, ESG disclosures, and digital advice. Staying ahead of regulatory updates reduces risk and builds client confidence.

2. Adopt Technology Strategically

Integrate CRM systems, portfolio-management tools, and client portals to streamline operations and improve reporting. Focus on platforms that enhance efficiency without compromising security or privacy.

3. Train on AI and Digital Tools

Educate advisors on AI-supported portfolio analysis, segmentation, and risk monitoring. Ensure “human-in-the-loop” oversight to mitigate bias and maintain suitability standards.

4. Enhance Client Personalization

Use data-driven insights to tailor investment strategies and communications. Balance personalization with privacy compliance to protect sensitive client information.

5. Plan for Succession

Establish clear succession and knowledge-transfer plans to maintain continuity and retain client relationships over time.

6. Focus on the Growing Demand for ESG and Transition Finance Expertise

Advisors should understand measurable ESG outcomes and transition-focused products to meet growing client demand for impact investing.

7. Invest in Advisor Productivity

Free up time from administrative tasks using managed-service platforms and automation, allowing advisors to spend more time on strategic client engagement.

By following these steps, firms and advisors can position themselves to navigate regulatory changes, leverage technology effectively, and deliver value to a new generation of clients.

Start Managing Your Wealth Today

Canada’s wealth-management landscape is shifting rapidly. Investors now expect transparency, personalization, and digital access, while advisors face pressure to adopt AI, automation, and fee-disclosure best practices. Regulatory readiness, ESG expertise, and intergenerational planning are no longer optional; they are essential for long-term success.

Both investors and firms must engage in ongoing due diligence, stay informed on policy changes, and balance innovation with risk management. By aligning strategies with evolving client expectations, leveraging technology thoughtfully, and maintaining compliance, participants in Canada’s wealth ecosystem can navigate 2025-2026 with confidence and resilience.