Investing FAQs
The questions and answers on this page are common questions the BC Securities Commission (BCSC) Contact Centre staff field in their daily work. If you want to follow up on one of these questions, reach out to the BCSC Contact Centre.
Most Commonly Asked Questions
How do I invest in crypto?
Not all crypto is the same. A cryptocurrency, like Bitcoin, is just computer code with little or no connection to cash-generating products or services. While access to the crypto asset market has become readily available to anyone, that doesn’t mean it’s the best investment option for everyone.
Crypto assets are considered high-risk investments that come with little investor protection because not all crypto assets are securities. Crypto assets can be bought and sold on crypto asset trading platforms. These platforms are newer firms that may not have controls to keep your money safe. Many exchanges are based outside of Canada, making it difficult to recover your money. That said, it’s a smarter decision to use platforms that are registered with Canadian securities regulators – they have legal obligations around safeguarding customers’ accounts. Still, if a platform ignores its obligations, your money could be in jeopardy.
You can see a current list of crypto trading platforms authorized to do business with Canadians here.
You can see a list of banned crypto trading platforms here.
What does the BCSC do?
The BCSC is the provincial agency that strives to make the investment markets benefit the public – enabling people to achieve their financial goals, enterprises to grow, and BC to thrive. We create and enforce rules to keep the investment marketplace fair, honest, and resilient, and adapt those rules in response to new risks, new investment products, and new business models.
When the rules are violated, we strive to return illegal gains back to victims. We hold the wrongdoers accountable through monetary penalties and banishment from the investment markets.
We want people to feel empowered about investing so they see it as a sound way to achieve their financial goals. So we demystify investing by sharing unbiased, reliable information about categories of securities, ways to invest, and pitfalls to avoid.
How can I check to see if an individual is registered?
Check registration by searching the Canadian Securities Administrators (CSA) website. The National Registration Search page will show current and historical registration history for individuals and firms, including any terms and conditions that might be in place.
How do I make a complaint? What kind of information does the BCSC need?
Please include the following information in your complaint:
- Your name and contact information.
- Information about the company/individual who is the subject of the complaint.
- The timeline of the complaint.
- Whether other regulatory agencies have been contacted and, if so, which ones.
- A narrative of the complaint.
- Any documents or sources relevant to your complaint.
Read more about filing a complaint or reach out to the BCSC Contact Centre for assistance with making a complaint.
What is investment fraud?
Investment fraud happens when bad actors successfully persuade and compel investors to make investment decisions based on false information. You could lose all of your money in an investment fraud.
How can I report investment fraud?
If you believe you may have lost money due to investment fraud or other investment market misconduct, we encourage you to file a complaint with the BCSC. The sooner we hear from you, the sooner we can take possible action.
Can the BCSC recommend investments?
No, the BCSC cannot recommend or give advice on investments.
However, the BCSC can:
- Answer general questions about investment products and services.
- Tell you if an investment firm or representative is registered in BC.
- Tell you if the BCSC, or another securities regulator, has disciplined an individual or company.
- Suggest options for pursuing a complaint and tell you which organization may be of the most help.
Where does BCSC funding come from?
The BCSC isn’t funded by taxpayers. Instead, it gets its funding mostly from fees paid by companies issuing shares, investment funds, and individuals in the business of buying and selling securities.
Can I get my money back after a financial loss?
Sometimes investors lose money because of an action or inaction made by their investment firm, and those investors may seek financial compensation from their investment firm. For example, your firm might have recommended investments that are unsuitable for you based on the information you gave them.
Learn about how to get your money back if you have suffered financial loss.
I’m handling my late family member’s estate and I am the designated beneficiary. How do I transfer shares owned by my late family member into my name?
Share transfers to family members or family trusts will normally require the estate’s executor to initiate the transfer of said shares from the name of the deceased into the name of the executor(s) or beneficiary(ies).
Crypto Questions
Should I invest with this crypto company or crypto fund? Are they registered?
The BCSC cannot recommend or give advice on investments.
If you’re going to buy crypto, it’s wise to use a registered crypto asset trading platform. In Canada, many platforms are currently not registered with securities regulators. It’s in your best interest to conduct a background check on any crypto asset trading platform, fund, or company that may be of interest to you. You can check to see if the platform you plan to use is registered by conducting a search on the CSA's National Registration Search. The CSA also maintains a current list of crypto trading platforms authorized to do business with Canadians. See the list here.
What crypto companies are registered in Canada?
The CSA maintains a current list of crypto trading platforms authorized to do business with Canadians. See the list here.
Do I need to pay tax on my cryptocurrency?
In general, possessing or holding a cryptocurrency is not taxable. But there could be tax consequences when you do any of the following:
- Sell or make a gift of cryptocurrency.
- Trade or exchange cryptocurrency, including disposing of one cryptocurrency to get another cryptocurrency.
- Convert cryptocurrency to government-issued currency, such as Canadian dollars.
- Use cryptocurrency to buy goods or services.
For more information on the tax treatment of cryptocurrency, check out the Government of Canada’s guide.
I lost money investing with crypto online. Can I recover my funds?
Crypto asset prices can be very volatile and can increase or decrease by small or large amounts many times during the day. No crypto asset investment is guaranteed, so there’s a very real possibility that you could lose all your money.
If you’ve lost your money through investing online with crypto assets, it’s unlikely you’ll be able to recover the lost funds.
If you’ve lost your money because of a potential investment fraud, contact the BCSC immediately. It’s important to understand though that some crypto assets fall under BC securities law, while others may not.
Investment Questions
I found an old stock certificate. How can I find out if the company is still active?
The BC Corporate Registry maintains records that may include name changes, location of records offices, past and present directors, and any articles of amendment for companies registered in British Columbia. If the company no longer exists, you may be able to find someone involved in scripophily, the study and collection of stocks and bonds, to purchase your old stock certificate.
How do I get started with investing?
If you feel you need help or want support in choosing investments and managing your money, a registered investment advisor can help you get started on your investing journey. It’s important to note that an investment advisor that sells securities, such as stocks, bonds, mutual funds, or exchange-traded funds must be registered with a provincial securities regulator.
Learn about working with a registered investment advisor.
In addition to traditional investment firms with in-person investment advisors, there are other investment service providers available for you to use if you choose, such as robo-advising and self-directed investing.
Watch this video to learn about robo-advising and self-directed investing.
For more information about how to get started with investing, watch our free video-based resource called Get Started with Investing.
How much money do I need to start investing?
You don’t need a large sum of money to start investing, but you do need to make sure you’re in an appropriate financial position that allows you to be comfortable with the risks that can come with investing.
In order to figure out the dollar amount you have to start investing, consider your current financial position, such as your income, expenses, emergency fund, any debt you may have, and if you have dependents. Once you’ve taken this into account, any money you have remaining can be put toward investing – whether it’s $5 or $1,000, or anything less, more, and in between.
Take our Investor vs. Saver Quiz.
Which investment account should I use?
There are a few options when it comes to investment accounts, and the one you choose depends on your financial goals.
You can open an investment account that will allow you to buy, sell, and hold investments. In this account, you are taxed on your gains.
You may have also heard of Registered Retirement Savings Plans (RRSPs), Tax-Free Savings Accounts (TFSAs), Registered Education Savings Plans (RESPs), and Tax-Free First Home Savings Accounts (FHSAs). Each of these specialized accounts allow you to hold investments, and have certain requirements that you need to know about. These accounts also allow you to hold investments, not just cash.
Over time, you may find yourself using more than one of these accounts. It will depend on your financial goals and needs.
Learn more about the different types of investment accounts.
Do I have to pay fees on my investments?
Fees are a part of investing. All fees reduce your returns, so you need to know what they are, what you’ll get for them, when you’ll pay them, and where they’ll be deducted.
There are different types of fees you can expect to pay, including trading, advisor, and management fees.
Watch this video to understand investment fees.
What are the requirements for me to qualify as an accredited investor?
To qualify as an accredited investor, an individual must have at least one of the following financial qualifications:
- At least $1 million in financial assets (cash and securities) before taxes, net of any debts. Your home and/or any other real estate you own are not considered financial assets.
- Net income before taxes of more than $200,000 consistently over the past two years ($300,000 when combined with a spouse’s net income).
- Net assets of at least $5 million. Net assets exclude all liabilities.
Learn more about the accredited investor exemption and other exemptions.
What are the warning signs of investment fraud?
We have five key fraud warning signs that you should look out for when you’re approached with an investment opportunity so that you can protect yourself and others from investment fraud.
What is a mutual fund?
A mutual fund is a pool of money that’s invested in a number of different securities for a large number of investors by a professional money manager, and entitles you to redeem your units at the end of each trading day.
What is an ETF?
An ETF, or exchange-traded fund, is a fund that holds the same mix of investments as a stock or bond market index and trades on a stock exchange.
Advisor/Dealer Questions
How can I get information on how to choose and work with an advisor?
Choosing and working with an advisor is an important part of being an informed investor. Read the Working with a Registered Investment Advisor section for guidance on choosing an advisor who’s right for you, and working with that person to fulfill your investment goals.
Can the BCSC recommend an advisor?
No, but we can give you guidance on choosing an advisor who is suitable for you and your investment situation. Take some time to read the How to Choose an Investment Advisor section on InvestRight.
Company Questions
I was contacted by a company offering to recover funds held through a crypto investment. Is this company legitimate?
If you recently lost money on your crypto assets, an offer to recover your lost funds may sound very appealing. If they already have your information, it’s likely this offer came from the same scammers and is designed to extract more money out of you.
While there are some legitimate recovery services that can help you trace or try and recover your lost funds, the majority of them are scams.
I'm thinking about investing in a private company. What do I need to know?
Unlike public companies, private companies don’t have to issue a formal prospectus. Without the information provided in a prospectus or ongoing disclosure that regulators require from public companies, you will have to gather information about the company yourself in order to make an informed decision. Be sure to find out as much as possible about its management team, financial situation, viability as a business, and financing activity.
Before you invest, read what InvestRight has to say about investing in private placements.
If the BCSC has issued a cease trade order (CTO) against a company, can a BC resident trade in the securities of that company while the CTO is in place?
Unless expressly permitted in the order, BC residents may not trade in the securities of a cease-traded company until the CTO has been revoked by the BCSC. CTOs remain in effect until a company files the required documentation and the BCSC revokes the order. If an order remains outstanding for more than 90 days, the company must provide additional disclosure and comply with National Policy 12-202 Revocation of Certain Cease Trade Orders.
If there are no exceptions applicable to your situation, you have two options:
- Hold onto your shares in case the CTO is revoked; or
- Consider claiming a capital loss on your income taxes.
I'm interested in raising capital in BC as a private company. Where can I find information about how to do this?
To raise capital without becoming a public company, you can rely on several exemptions. The BCSC cannot tell you which exemption is appropriate for your needs, but the Private & Early Stage Businesses section on the website contains a summary of the exemptions on which you can rely. Consider obtaining some legal advice to help you.
Where can I find information about public companies?
SEDAR+ (System for Electronic Document Analysis and Retrieval) is a mandatory filing system for Canadian public companies. SEDAR+ provides free public access to continuous disclosure filings, including prospectus documents and financial statements.
You can also check the status of BC companies on the Reporting Issuers List.
To see if a company is cease-traded, check the National Cease Trade Order Database, or any outstanding or historical orders issued by the BCSC.
EDGAR (Electronic Data Gathering, Analysis, and Retrieval system) is the US equivalent for researching public companies listed on an American stock exchange.
What is SEDI?
SEDI (System for Electronic Disclosure by Insiders) is a mandatory filing system that collects the reports of all share transactions made by people who are considered insiders of a company. Regulators monitor insider trading to ensure securities regulations are followed. This is available at no cost to the public.
Shareholder Questions
What can I do when the Board or Chair makes decisions which are bad for shareholders?
The BCSC does not review or approve corporate governance issues such as the valuation and fairness of a transaction to shareholders.
If directors are proposing a transaction that may be to the detriment of shareholders, it is up to the shareholders to choose to vote against the proposal, or pursue their rights under the Business Corporations Act. The relevant exchange may also review the transaction under its policies.
You may wish to consider consulting with a lawyer if you are pursuing your shareholder rights and remedies or the return of your invested funds. You can obtain a referral to a lawyer by contacting [email protected].
If you invested less than $35,000, you may also wish to consider pursuing civil remedies through Small Claims Court proceedings.
What can I do when the Board/Chair/Company won’t hold an AGM?
There are no specific requirements in securities legislation around holding an annual general meeting. Annual general meetings are a requirement under the Business Corporations Act. The relevant exchange may also have requirements regarding the timely holding of annual general meetings.
You may wish to consider consulting with a lawyer if you are pursuing your shareholder rights and remedies. You can obtain a referral to a lawyer by contacting [email protected].
What can I do when the company won’t file their financial reports and are cease-traded for failure to file?
A cease-traded company must submit its missing filings and apply to remove a cease-trade order. If the company has been cease-traded for more than 90 days, the company will be subject to a review by BCSC staff. The company may be required to re-file if the statements need clarification.
If you hold securities of a cease-traded company, and you wish to trade those securities (e.g. disposition to realize a tax loss), you should review the relevant cease trade order and seek advice from a trusted professional. The BCSC has also issued relief so that clients may sell securities of a dormant issuer subject to a cease trade order to their investment dealer, if certain conditions are met.
How do I get a company to respond to my email or phone call?
If a company is not responding to your inquiries, you may wish to consider consulting with a lawyer for advice. You can obtain a referral to a lawyer by contacting [email protected].
How do I get my money when my redemptions have been suspended?
The terms and conditions regarding redemptions should be contained in documents provided to you at the time of purchase. Exempt market (a.k.a. private placement market) products may have specific terms for redemption.
You may want to contact the company to discuss its terms regarding redemptions.
If a company is not responding to your inquiries, you may wish to consider consulting with a lawyer for advice. You can obtain a referral to a lawyer by contacting [email protected].
I own shares in a private BC company and the board has not provided any updates to shareholders. What are my rights as a shareholder and what can the BCSC do?
An investment made through the private placement market will not offer the protections available in public investment markets.
This means:
- You may not get detailed disclosure about the company and will not have the involvement of a registered investment advisor. The BCSC does not review the disclosure from these companies.
- You may not get ongoing and timely disclosure from the company, either before or after you invest.
- You may not get audited financial statements from the company before you invest.
Questions About Filing Complaints
How do I make a complaint? What kind of information does the BCSC need?
Please include the following information in your complaint:
- Your name and contact information.
- Information about the company/individual who is the subject of the complaint.
- The timeline of the complaint.
- Whether other regulatory agencies have been contacted and, if so, which ones.
- A narrative of the complaint.
- Any documents or sources relevant to your complaint.
Read more about filing a complaint or reach out to the BCSC Contact Centre for assistance with making a complaint.
Can I file a complaint without providing my name or contact information?
Yes. While the BCSC would like to obtain as much contact information as possible from anyone making a complaint, we will accept complaints from individuals who have not provided their name or contact information. Please consider, though, that the success of an investigation often depends on locating people with first-hand knowledge of the alleged wrongdoing.
You can use the BCSC's online complaint form to report your concerns about possible investment scams or visit the Report Fraud or Misconduct section to learn more about filing a complaint with the BCSC.
How can I make a complaint against my dealer or advisor?
Before pursuing action with a regulator, raise your concerns with the person who handles your account.
If you are unable to resolve matters with your advisor, ask the firm for information about its formal complaint process. In most cases, the next step is to write a letter to the firm’s branch manager or compliance officer. The firm should acknowledge receipt of your letter, investigate your complaint, and then inform you of the outcome.
If you are not satisfied with the registered firm’s response, then you can complain to an independent dispute resolution service called the Ombudsman for Banking Services and Investment (OBSI). OBSI is independent from registered firms and provides impartial and informal reviews of investment disputes. OBSI’s services are free for you to use, and it can recommend compensation of up to $350,000.
You can complain directly to OBSI if the registered firm does not send you its written decision within 90 days. If the registered firm sends you its written decision within 90 days, then you have 180 days to complain to OBSI.
You can make an online complaint to OBSI here. You may also contact OBSI by telephone or in writing, and if needed, OBSI provides accessibility tools to assist individuals with disabilities.
If your firm is a member of the Canadian Investment Regulatory Organization (CIRO), you may also want to raise your complaint with them. A directory of member firms is available on CIRO's website.
If the registered firm you are dealing with is a portfolio manager, an exempt market dealer, or a scholarship plan dealer, then contact the BCSC through our Report Fraud or Misconduct page or BCSC Contact Centre.
If you are concerned that you may be the victim of a fraud or theft committed by your dealer or salesperson, you may wish to contact your local police agency to file a complaint. If you need further assistance, please reach out to the BCSC Contact Centre.
What does the BCSC do when it receives a complaint?
The BCSC reviews complaints made against individuals or companies involved in trading securities in BC. The BCSC evaluates the actions of these individuals and companies for possible breaches of provisions of the Securities Act. The BCSC may refer some complaints to other agencies, where appropriate.
Read more about filing complaints in the Report Fraud or Misconduct section.
Enforcement Questions
Can the BCSC get my money back?
The BCSC has the power to make various orders relating to money and enforcement that staff frequently apply for these types of orders. For example, before a hearing the BCSC can issue orders to freeze funds. After a hearing, if someone has contravened the Securities Act, the BCSC can order that person to pay the BCSC the amount they obtained, or amounts they avoided paying, from the misconduct. Any funds collected under this type of order would be repaid to investors.
For more information, review the BCSC's Returning Funds to Investors page.
What can I do on my own behalf to get my money back?
You should speak to your lawyer about what steps you can take to try and get your money back. Depending on the type and amount of your claim, you may be able to start a lawsuit in a Provincial Court (Small Claims Court) or in the Supreme Court of British Columbia. You should speak to your lawyer (Lawyer Referral Service) as soon as possible because there may be a limitation period, after which you may not be able to start a lawsuit.
Where can I find information on BCSC hearings or other enforcement action?
BCSC public enforcement and administrative actions can be viewed on the BCSC public website, in the Enforcement section. You’ll also find information on individuals and companies the BCSC disciplined in the Investment Caution List and the Disciplined List. You can reach out to the BCSC Contact Centre for further information.
What is the statute of limitations for the BCSC?
The Securities Act prohibits the BCSC from investigating complaints about events that occurred six years ago or more. Please see the Securities Act (sections 140 and 159) for more information about the limitation period.
How do I exercise my rights as a shareholder?
In BC, your shareholder rights and remedies are contained in the Business Corporations Act.
I invested in a company that was sanctioned by the BCSC. How do I collect my funds?
Only eligible applicants can make a claim for money collected pursuant to an order made by a BCSC administrative panel that resulted in a claims process. An eligible applicant is a person who:
- suffered monetary loss as a direct result of misconduct that resulted in an order that gave rise to a claims process under the Securities Act;
- did not directly or indirectly engage in the misconduct that resulted in the order that gave rise to a claims process; or
- has not been denied a claim under section 7.4 (6) of the Securities Regulation.