I recently received a letter from my financial advisor telling me that some of my accounts are moving from a tiered-fee rate to a flat-fee rate structure starting Jan. 1, 2026. I’m sure I’m not the only Canadian who received the notice, and it got me thinking about what this change really means for us — and whether it could help or hurt our wallets.
Under the tiered model, the percentage I pay in advisory fees would adjust automatically depending on the size of my investments. In other words, the more you have invested, the lower the percentage you’d pay — a kind of reward for growing your wealth.
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But according to the letter, that’s about to change: “We will transition from a tiered-fee rate to a flat-fee rate structure for IG Advisory Accounts (IGAA), iProfile Accounts and Azure Managed Investments. This means your advisory-fee rate will be a fixed annual percentage that no longer adjusts automatically, based on your level of household investments,” my letter from IG Wealth Management said.
In plain language, the rate I’m paying as of Dec. 31, 2025 will become my fixed percentage going forward. The letter reassured me:
“Your advisory-fee rate on your current accounts will not increase, and no action is required on your part.”
So even if my portfolio grows or drops, my fee rate stays the same — unless I actively renegotiate.
Why they might be doing this
From the firm’s perspective, this makes sense. Flat fees are easier to explain, simpler to calculate and provide a stable, predictable revenue stream. They also reduce the need to track breakpoints or adjust rates every time someone contributes or withdraws money.
The letter says the change is part of a “commitment to clarity and transparency,” which seems fair. Regulators and industry observers have been pushing for more understandable fees, and firms across Canada are increasingly adopting flat or simplified fee structures.
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How this could affect us
For me, a flat fee could actually be helpful. If my investments dip, I won’t automatically pay more — that stability makes it easier to plan my finances. And knowing exactly what I’ll pay each year removes a little of the stress around fees creeping up unexpectedly.
But there’s a flip side. If my portfolio grows significantly over time, I might end up paying more than I would have under the tiered model, since I lose the automatic discount tier that rewards higher balances. In other words, predictability comes at a potential cost.
Real-dollar example
Let’s put some numbers to it. Say you currently pay 1% on a $250,000 portfolio under a tiered model. If your advisor’s tiers drop to 0.8% once your portfolio grows to $500,000 and 0.7% at $1 million, here’s what that could look like in a flat-fee scenario:
- If your rate is locked at 1% and your portfolio grows to $500,000, you’d pay $5,000 annually. Under the tiered model, you might have paid $4,000 — meaning the flat fee costs $1,000 more.
- If your portfolio hits $1 million, the flat 1% fee comes to $10,000 annually, whereas the tiered model might have been closer to $7,500 — a difference of $2,500 a year.
- On the other hand, if your portfolio drops back to $200,000, a flat fee at 1% would only cost $2,000, potentially saving you a little compared to tiered rates that might have gone higher due to lower balances.
The key takeaway is that the impact of the flat fee depends heavily on how your portfolio moves over time.
What I’m doing — and what you might want to do
Receiving this letter got me thinking about a few steps I’m taking to make sure I’m still getting value:
- Checking which accounts are affected – Not every account is included. Series A, B, C or J accounts that don’t charge an advisory fee aren’t impacted.
- Comparing rates – I’m reviewing my current tiered schedule and calculating how the flat fee will change my costs if my portfolio grows or shrinks.
- Asking questions – I’ll be talking to my advisor about what happens if my rate is ever reviewed and whether there are protections against unexpected increases.
- Reviewing services– Flat fees only make sense if the advisory services — financial planning, rebalancing and advice — remain consistent.
I think anyone getting a similar letter should take these steps too. Fees are one of the biggest ongoing costs in investing, and even small percentage differences can add up over time.
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Bottom line
Flat advisory fees are coming, at least to me, and they’re meant to make costs simpler and more predictable. But simpler doesn’t always mean cheaper.
If your portfolio is growing, a flat rate could mean you’ll pay more over time than you normally would have under a tiered structure. If your portfolio is steady or shrinking, it might actually save you money.
For me, the key takeaway is to stay engaged, understand my fee structure, and ask questions. Even if my fees are flat, it’s up to me to make sure I’m still getting value for every dollar I pay.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.