Court Case Brings to Light Banned Practice of Account Churning in Canadian Banks

Court Case Brings to Light Banned Practice of Account Churning in Canadian Banks
Canada’s six largest banks located in Toronto’s financial district are seen in a file photo. The Canadian Press/Michelle Siu
William Crooks
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A Federal Court case has brought to light a now-banned practice known as “account churning” among Canadian bank employees incentivized by commission-based pay.

Evidence emerged during a recent case about the misconduct that involved bank employees engaging in excessive trading to generate fees, as first covered by Blacklock’s Reporter on Feb. 29. Account churning came under scrutiny after Parliament passed legislation to prohibit the practice in 2018.