A regulator-led survey of Ontario mutual fund dealers based out of big banks shows a sizable minority are not always acting in the interest of clients.

The survey of close to 3,000 dealers by the Ontario Securities Commission and the Canadian Investment Regulatory Organization found that 25 per cent say they have at least sometimes recommended products or services to clients that are not in their interest.

OSC chief executive Grant Vingoe says the results of the survey show sales pressures and compensation incentives may be driving concerning behaviour.

The regulator launched the study in response to a CBC investigation last year that alleged bank sales targets were leading dealers to pressure customers to sign up for financial products they didn’t need.

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The survey found 23 per cent of dealers agreed there is high pressure to sell potentially unneeded products or services, while 60 per cent disagreed with the statement.

The OSC says next steps in its review include learning more about the sales practices in place at banks, and understanding the controls dealers have to address any material conflicts of interest.