As part of its Investor Education Month activities, the British Columbia Securities Commission (BCSC) is publishing the results of a four-part, 16-month investor study and a Take a Look at Your Investment Fees webpage on InvestRight.org.
The study features insights into how a regulatory initiative – the Client Relationship Model Phase 2 (CRM2) – affected millennial investors, a large demographic of individuals between the ages of 18 and 34.
The research found that millennials’ general understanding of investment fees has improved since the first CRM2 fee disclosure reports were sent out in 2016 – half of all millennials in the study (49 per cent) saw some long-term improvement in their general understanding of investment fees.
The BCSC continues to educate investors of all ages about investment fees by creating resources like The Take a Look at Your Investment Fees webpage. This campaign web page features a number of different resources to help people better understand investment fees. On the page, investors can:
- Calculate the difference fees make to your overall investment return over a 20-year period with our Fee Calculator.
- Use the interactive section of the page to find out more about three investment fee myths.
- Watch a fees video that shows you what you should look out for in your annual fee report.
- Read the Fee Guide to get a better understanding of what you pay to invest.
- Test your fee knowledge with a short, interactive quiz.
Since the first part of research study, millennials have shown they are more likely than other generations to make changes to how they invest. Although they were no more likely than other age groups to take any new actions after receiving the fee reports, those millennials who did act were more likely than older generations to change their advisor or firm. Twenty-eight per cent of millennials changed their advisor or firm during the study period, compared to 20 per cent of those 35-54 and only 7 per cent of those 55+.
As part of a number of changes to InvestRight.org this fall, we updated our Advisor Check page. This page walks investors through the four steps they should take when choosing or researching an investment advisor, including checking to see if the person is registered to sell securities.
Check in on the blog next week for a second Investor Education Month announcement.
About the Investor Readiness for Better Investing study
The BCSC commissioned the four-part longitudinal Investor Readiness for Better Investing study to measure how well B.C. investors understand the fees they pay and how the fee disclosure reports affected investor knowledge, attitudes, and behaviour. Canadian investors began receiving the fee disclosure reports in January 2017. The BCSC’s four-part longitudinal study tracked investor knowledge and behaviour before and after receiving the new reports. The study only looked at investors who work with an investment advisor. The study was conducted by Innovative Research Group Inc. from November 2016 to March 2018.
If you have any concerns about a person or company offering an investment opportunity, please contact BCSC Inquiries at 604-899-6854 or 1-800-373-6393 or through e-mail at [email protected]. You can also file a complaint or submit a tip anonymously using BCSC’s online complaint form.
With the Registered Retirement Savings Plan (RRSP) deadline approaching, it is a good idea to familiarize yourself with the Canadian Securities Administrators’ (CSA) Fund Facts Interactive Tool. This tool allows you to better understand the mutual funds that you are considering purchasing as an RRSP contribution. The CSA has published a sample Fund Facts document […]