OSC study finds many investors overestimate their knowledge

The Ontario Securities Commission (OSC) published the results of a survey assessing Canadian investors’ financial literacy. As individuals take on more responsibility for their own investing, it is essential that they have enough financial knowledge to effectively participate in Canada’s capital markets. Investors’ knowledge, attitudes, skills, and behaviours are all contributors to having a successful investing journey.



4 Reasons to keep saving even when inflation is high

When inflation rates go up, it can be tempting to look for ways to grow your money at rates higher than the rate of inflation. Investing can feel more appealing than the average savings account.

While it’s important to stay the course on your investing goals, don’t neglect your savings. There are many reasons why a savings account is still worth tending to, even during tough times. If you’re making ends meet and still have extra to put aside, keep these tips in mind.



Investment knowledge quiz

Most people know a little about investing, but they need to know more to be able to manage their investments to meet their goals. Try this quiz by the FCAC to see if your knowledge is basic or more advanced.



Start Your Investment Journey

Before you start investing, it is important to consider your budget and financial goals, and how much risk you are comfortable taking on. Like many things in life, investing comes with its own share of risks and rewards. You can do this on your own or with the help of an advisor.



Social influencers and your finances

Just because someone has a lot of followers doesn’t mean their advice is right for you. Social media influencers are increasingly sharing information about investing. This can be done by ordinary people or by celebrities who have taken an interest in a specific product or investment. They are often called “finfluencers” — financial influencers whose media accounts are focused on money and investing. This article will outline some questions to ask yourself before you choose to invest.



Investing and saving during a recession

If a recession seems likely, consider how your investing and savings plans may be affected. Increases in the cost of living and borrowing, combined with the overall financial uncertainty over the impact of a potential recession, can be enough to cause personal and financial stress. There is no single best way to respond to such times.



Research study: Crypto assets 2022

This study by the Ontario Securities Commission examines Canadians’ crypto ownership and knowledge. It found 13% of Canadians currently own crypto assets or crypto funds. The study also found most Canadians did not have a working knowledge of the practical, legal and regulatory dimensions of crypto assets. Crypto assets were believed to play a key role in the financial system by 38% of those surveyed. The study provides a profile of crypto owners, their reasons for purchasing crypto assets or crypto funds, the role of financial advice, impact of advertising, and the experience of crypto owners with crypto trading platforms. 



Investing with confidence for financially vulnerable Canadians


When it comes to investing, there are many considerations to make before choosing if and what types of investments are best for your situation.

This webinar explores the topic of investor education and consumer protection for financially vulnerable Canadians. We'll start by discussing the basics of investments and ways to determine if investing is right for you. We'll then discuss some common investment frauds and how to protect yourself, then examine some real-life scenarios of fraudulent investment activity and the steps needed to take action if you are victimized.

The webinar speakers are:

  • Tasmin Waley (FAIR Canada)
  • Christine Allum (Ontario Securities Commission)
  • Brigette Catellier (Investor Protection Clinic at Osgoode Hall Law School)

This webinar will benefit frontline practitioners supporting those in financially vulnerable situations, who may be considering investing or have already invested. 

Click 'Get it' below to access the video link, and scroll down to access slides, handouts, and video timestamps for this webinar.




Read the presentation slides for this webinar.

Download resources provided by webinar speakers:

Time-stamps for the video recording:
3:24 – Agenda and Introductions
6:36 – Audience poll questions
9:33 – FAIR Canada presentation (speaker: Tasmin Waley)
24:07 – Ontario Securities Commission presentation (speaker: Christine Allum)
39:10 – Investor Protection Clinic at Osgoode Hall Law School (speaker: Brigitte Catellier)
51:34 – Q&A


Investment products

There are many investment products, here's some information about them:

Annuities: a contract with a life insurance company. Annuities are most commonly used to generate retirement income. 

Bonds: when you buy a bond, you’re lending your money to a company or a government for a set period of time. In return, the issuer pays you interest. On the date the bond becomes due, the issuer is supposed to pay back the face value of the bond to you in full.

Complex investments: these investments may have the potential for higher gains, but carry greater risks. 

ETFs: when you buy a share or unit of an ETF, you’re investing in a portfolio that holds a number of different stocks or other investments.

GICs: when you buy a guaranteed investment certificate (GIC), you are agreeing to lend the bank or financial institution your money for a set number of months or years. You are guaranteed to get the amount you deposited back at the end of the term. 

Mutual funds & segregated funds: when you buy a mutual fund, your money is combined with the money from other investors, and allows you to buy part of a pool of investments. 

Real estate: While real estate investments can offer a range of benefits, there is no guarantee that you will earn an income or profit and, like any investment, there are a number of risks and uncertainties that you need to carefully consider before investing.

Stocks: The stock market brings together people who want to sell stock with those who want to buy stock. When you buy stock (or equity) in a company, you receive a piece of the company and become a part owner.

Pensions & saving plans: if your employer offers contributions to your retirement or other savings plan, take advantage. 

Cannabis: Emerging sectors like the cannabis industry have often attracted investors hoping to be among the first to capitalize on the potential growth and high returns of what they believe are untapped markets or products that may be popular in the future.

Cryptoassets: Cryptoassets primarily designed to be a store of value or medium of exchange (e.g., Bitcoin) are often referred to as “digital coins.



Reporting fraud

A comprehensive set of articles are available on the Ontario Securities Commission website on how to identify and report fraud as well as what to do if you have been defrauded.  



A guide to the best robo-advisors in Canada for 2022

Robo-advisors first arrived in Canada in the beginning of 2014 presenting young and middle-income investors the option of having their savings passively managed in a bundle of exchange-traded funds (ETFs) matched to their goals and risk tolerance for about a penny on the dollar per year: A perfect set-it-and-forget it solution for people with better things to do. 

Fast forward to today and the honeymoon atmosphere has dissipated. Against the backdrop of an extraordinarily long-lived bull market in stocks, active management has made a comeback (not least in the ETF space), exotic asset classes like cryptocurrency are on the rise, and new competition is coming from asset-allocation ETFs that do the job of portfolio management all in one security.

Suddenly robo-advisors find themselves having to prove their worth anew, all the while trying to establish a profitable business model in a low-margin corner of the investment universe. It’s surprising, really, because amid all the competition their fee structures and value proposition are as good as or better than ever. 

Investors now must probe deeper in their choice of robo-advisor, asking tough questions around performance, risk and the composition of portfolios. The 2022 survey of the Canadian robo industry shows, they’re not all the same.



Checking registration

Checking registration helps protect you from unqualified or fraudulent individuals. Always check the registration of any person or business trying to sell you an investment or give you investment advice by using the Canadian Securities Administrators’ National Registration Search.

Titles like financial advisor, financial plannerinvestment consultant, and investment specialist aren’t legally defined terms or official registration categories. Some advisers or dealers may have designations that allow them to use specific titles, such as Certified Financial Planner (CFP), Chartered Professional Accountant (CPA) or Chartered Financial Analyst (CFA). Checking registration tells you what specific products and services they are (and aren’t) qualified to offer you, regardless of title.



Let’s talk money- seniors edition

Open, honest conversations about money are one of the keys to building a healthy relationship with your family, across the generations.

With a little preparation, talking about financial matters can help build trust, deepen connections, relieve stress and lead to greater peace of mind.

Yet for many people, these conversations can be difficult. In some families, money is just not something you talk about. The same applies to wills, inheritances, senior living, end-of-life care and many more topics that matter most to seniors.

Let's Talk About Money: Seniors' Edition -- wants to help you change that. There are tips to help parents talk with adult children and tips for adult children to have meaningful money conversations their parents.

The most important thing is to have these conversations early, before there’s a crisis. So let's start talking.



Investing basics

Whether you’re a first-time investor, thinking of saving for your education, or planning for your retirement, FAIR Canada's investing basics may help you on your investing journey. 



Compound interest calculator

Using OSC's online calculator, find out how your investment will grow over time with compound interest.



Introduction to investing: A primer for new investors

The resources and tools provided by OSC on this website are intended to be a starting point for new investors, including people who are new to Canada. The information here can help you make more informed investment decisions and help you better protect your money.

The information is available in multiple languages.



A guide to protect yourself against investment fraud

Today’s investment landscape offers such a range of products, investing tools, and information that the average investor may feel overwhelmed. As advancements in technology continue to accelerate, new online investing platforms and opportunities are showing no signs of slowing down any time soon.


And as the world of investing continues to innovate, so do the tactics of fraudsters when designing and carrying out scams against unsuspecting victims.


In this guide, we discuss investment fraud and some key things you should know before investing, including helpful tips to protect yourself from investment scams.

 



Scam spotter tool

Are you considering a new investment?
Use this tool to learn how to spot the warning signs of fraud, and to learn how to protect yourself from suspected scams.



Investor readiness quiz

Investing is an important part of planning for a financially secure future. It can battle the effects of inflation on your savings, grow your wealth, and provide sources of income in retirement. The sooner you invest, the longer compound interest can work to grow your savings exponentially. However, there are some important milestones to achieve and questions to consider before you start investing. 

Are you ready to invest? Take this quiz to find out!



Pay down debt or invest tool

If you have extra money, this calculator helps you decide whether to invest or pay off debt.



Helping low-income clients retire successfully- Free Course

Financial planners and advisors want to better the lives of the people they work with, but may not know that conventional retirement advice often doesn’t work for low-income retirees.

Getting it right when every dollar counts

The advice that works well for higher- and middle-income clients can work against lower-income retirees – meaning they lose out on government benefits and must live on less, even though every dollar counts when you’re living on a low income. That’s why there’s a new CE-accredited course available at no charge for anyone who wants to learn how to help low-income retirees plan for and make the most of their retirement income. Although the course was developed for financial advisors and planners, it is open and available to all.

Learn from seasoned experts

Based on the work of John Stapleton of Open Policy Ontario and developed by Certified Financial Planner professional Alexandra Macqueen, the course is hosted and was accredited by Business Career College, a We Know Training brand and a leader in training for the financial services and insurance industries.

The course includes:

● Accreditation for 5.5 CE credits with FP Canada, Advocis, and IIROC
● Working knowledge of the government benefits programs available to low-income retirees
● A look at the savings and investing options available to low-income retirees and how to optimize client situations
● Guidance about the impact of earned income and taxes on low-income retirees
● A series of case studies, plus recorded conversations with financial planners about how planning for low-income retirees works in practice

To take the course:

1. Go to www.businesscareercollege.com
2. Either sign in (if you have an account) or Sign Up (near the top right) to create a free account. You'll then have to "Create Learner Account."
3. Once logged in, there is a yellow button near the top right of the screen called "Enrolment Key." Click here and provide the Enrolment Key retiring-on-low-income-indigo-2771 (an exact copy and paste is probably ideal)



Investing and The COVID-19 Pandemic: Survey of Canadian Investors

The Investor Office conducted this study to further our understanding of the experiences and behaviours of retail investors during the COVID-19 Pandemic. The study explored several topics including the financial preparedness, savings behaviour, financial situations, changing preference, and trading activity of retail investors. Key findings include that 32 per cent of investors have experienced a decline in their financial situation during the pandemic while 16 per cent have experienced an improvement. Half of investors have not done any trading during the pandemic, but of those who have been trading, 63 per cent have increased their holdings.



Fearless Woman: Financial Literacy and Stock Market Participation

Women are less financially literate than men. It is unclear whether this gap reflects a lack of knowledge or, rather, a lack of confidence. This survey experiment shows that women tend to disproportionately respond “do not know” to questions measuring financial knowledge, but when this response option is unavailable, they often choose the correct answer. The authors find that about one-third of the financial literacy gender gap can be explained by women’s lower confidence levels. Both financial knowledge and confidence explain stock market participation.



Retirement Literacy Website

The ACPM Retirement Literacy Program complements the financial literacy education efforts by the federal and provincial governments, and other organizations.

The website contains a series of quizzes to help improve your knowledge of pensions and retirement savings plans as well as links to financial literacy resources.



Investor Protection Clinic and Living Lab: 2019 Annual Report

The Investor Protection Clinic, the first clinic of its kind in Canada, provides free legal advice to people who believe their investments were mishandled and who cannot afford a lawyer. The Clinic was founded together with the Canadian Foundation for Advancement of Investor Rights (FAIR Canada), an organization that aims to enhance the rights of Canadian shareholders and individual investors.

The 2019 Annual Report summarizes the work of The Clinic, including description of the work and types of cases, example case scenarios of the clients who benefited from The Clinic's services,  client data and demographics, and recommendations. 



My money in Canada

Are you a newcomer to Canada, or someone who works with newcomers? This online tool will help you explore five money modules to better manage your finances in Canada. Learn about the financial system in Canada, income and expenses, setting goals and saving, credit and credit reports, and filing taxes. 

 

Updated July 26, 2022:

My money in Canada provides important information about Canada’s financial system and promotes positive money management habits to support Canadians to succeed financially. Interactive exercises and checklists support you to make informed choices and to create a customized financial plan that works for you.

Originally designed to support newcomers to Canada as they settle and establish themselves financially, My money in Canada has  been updated to serve all Canadians, including those who are new to Canada.

 



My money in Canada

This online tool will help you learn about the financial system in Canada and how to manage your money. Explore five money modules on banking, income and expenses, money goals and savings, credit, and taxes. 

Clients can do the modules in the order they appear, or just the ones they want to use. The tool is intended to be used with clients and settlement workers together, but can also be used by the client on their own if they are comfortable. 



Video: Additional CPP

This short video from the Canadian Pension Plan Investment Board explains the new additional Canada Pension Plan (CPP). 



RRSP Savings Calculator

Use this tool by the OSC to estimate how much your registered retirement savings plan (RRSP) will be worth at retirement and how much income it will provide each year.



TFSA Calculator

This calculator will help you estimate the value of the investments in your TFSA when you’re ready to withdraw them, and compare this amount to the value of your investments in a non-registered plan to see your overall estimated tax savings.



National Investor Research Study

This presentation shows the results of a quantitative study undertaken by the Ontario Securities Commission to assess attitudes, behaviour and knowledge among Canadians pertaining to a variety of investment topics. These topics include retirement planning and conversations about finances. 



The Complaints Process for Retail Investments in Canada: A Handbook for Investors

Canadian investors need more and better information to protect themselves  both when they act on their own and when they retain lawyers. This handbook is intended to help Canadian investors better understand the choices they face when making a complaint and the impact of those choices. It can also serve as a guide to assist them when they work with lawyers, particularly those whose law practice does not focus on assisting Canadian investors in obtaining financial compensation.