TORONTO, Aug 14 (Reuters) - Canadian online bank and

brokerage Wealthsimple asked Ottawa this week to review rising

bank exit fees, in an annual consultation for the government's

budget, the company said.

Exit fees for Canadians moving their Registered Retirement

Savings Plan or Tax-Free Savings Account at major Canadian banks

have risen to as much as C$150 ($108.99) per savings account

from as low as zero to C$75 in the early 2010s.

Canada's six big banks, including Royal Bank of Canada ( RY )

and TD Bank, are some of the best capitalized financial

institutions among the G7 countries and control over 90% of the

banking sector.

Wealthsimple and other digital banks are attracting young

clients looking to spend less on banking fees and increase their

savings.

The bank offers to reimburse new clients for some of the cost of

moving their funds from other banks.

"If the government were to take action, it would make it

easier for clients to overcome that friction," Jessica Oliver,

Wealthsimple's head of government and regulatory relations, said

in an interview on Wednesday.

In its submission for the budget consultation on Tuesday,

Wealthsimple asked the Financial Consumer Agency of Canada to

review practices related to transfers between banks and

government to amend the Income Tax Act and related regulations

to contain exit and transfer fees on registered accounts.

FCAC said it cannot comment on pre-budget consultations. The

parliamentary finance committee said the brief has not yet been

distributed to members for review.

Wealthsimple said its clients have been charged nearly C$30

million in exit fees to move their savings to its platform.

"There is no reason why financial institutions should be

permitted to levy high, hidden exit fees on the rapidly growing

number of registered plans," privately-held Wealthsimple said in

its submission.

The Canadian Bankers Association, a lobby group representing

the country's big banks, said in a statement that banks are

required to clearly disclose any fees.

Analysts say the success of challenger banks such as

Wealthsimple and EQ Bank could squeeze the profitability of big

banks and require them to re-evaluate fee structures.

($1 = 1.3763 Canadian dollars)