Purpose Investments founder and CEO Som Seif says the financial services industry is dominated by incumbents who don’t like change, and they use the regulated nature of the industry against potential challengers.
The news: Seif made the remarks in a keynote address kicking off the 2026 Canadian Finance Summit on Thursday morning during Toronto Tech Week.
Seif highlighted what he sees as the challenges and opportunities within the Canadian financial industry, namely that traditional finance is “very self-centred” because it does not consider how to make its products more user-friendly.
From the source: “Nine out of 10 executives who run this in this industry today think today is the best day it’s ever been, meaning that they would love it for nothing to change,” Seif said. “The regulatory capture of our industry ultimately enables the major and large incumbents to play that game and make it a headwind against the challengers.”
This environment makes it difficult for disruptive firms, he said, which “have to wake up every day and find a way” to win customers.
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Following the thread: Seif is facing his own regulatory headwinds. In September 2025, the Ontario Securities Commission (OSC) alleged that he authorized his firm, Purpose, to make false statements about the environmental, social, and governance considerations of its investments. The OSC wants to fine and suspend Seif and Purpose from managing investor funds as punishment. Seif has said he will “vigorously contest” the allegations.
Proceedings on the matter commenced in front of the Capital Markets Tribunal this week and are set to continue into September.
Final thought: Canada’s finance industry has been traditionally dominated by a small list of big players, but Seif said all players, big and small, will need to centre their businesses around helping customers plan for their financial future.
While the financial industry’s human “trust layer” has been shrinking as technology takes on the heavy lifting, Seif said the industry should focus on optimizing the financial expertise it can provide to customers in the last “one maybe two percent” of that layer.
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Feature image courtesy Alex Riehl for BetaKit.