The Canadian Investment Regulatory Organization (CIRO) says it is making an effort to provide more detailed insights and updates on investor concerns and trends. To that end, it has published an Investor Survey of 3,497 Canadians, to gather information on the “evolving landscape” of investor concerns and behaviours. 

“Our goal is to enhance investor confidence and ensure they have access to reliable, regulated financial advice,” says Karen McGuinness, senior vice president, office of the investor, member intake and innovation at CIRO.

Whether Canadians are interested in the advice being regulated may be another story. According to the regulator’s own research, more than a quarter, 28 per cent of those surveyed indicated that they use social media, forums, or “finfluencers” for financial information and advice. “Of these, 44 per cent believe the information they receive from these sources is equally valuable as that from a traditional advisor,” they state.

The research also indicates that familiarity with regulators is low, with most not knowing who regulates investment advice or where to file a complaint. Most think a 90-day response time is unreasonable. Out of the 23 per cent who said they had a concern about their investment accounts in the past year, only five per cent filed a complaint.

Overestimating risk tolerance 

The lengthy report examines five themes, including financial goals and challenges, investment decision-making and risk (no surprise: many overestimate their risk tolerances, reporting higher risk tolerances but still saying they would sell during a market crash). The investor-advisor relationship (see also: compensation) is also examined, alongside investor redress and complaint handling and frauds and scams (one-in-five say they have been approached with a possible investment fraud in the past year, most of which they say go unreported).

Among the findings, they say inflation and the cost of living is significantly impacting investor confidence. They add that 28 per cent of all surveyed and 40 per cent of those between 18 and 34 needed to borrow money to cover daily expenses in the past year.

Cost of living 

Of those surveyed, 54 per cent identified as investors – investing was also correlated with income. (Those with higher incomes being more likely to identify as being investors.) Notably, 29 per cent reported investing less in the past year, with inflation and the rising cost of living being the primary reasons cited.

The report also notes that investment advisors can be an important resource for more vulnerable Canadians “if they are able to work with one.”