A recent poll undertaken by the Canadian market research firm, CROP Inc. and commissioned by Talvest Fund Management shows s shift in investor attitudes toward conservatism and risk-aversion.

The survey, based on 2,627 in-home interviews, found that the underperforming stocks markets of the past 30 months, corporate governance issues, and September 11 have all changed the way Canadians think about their money.

“It’s understandable that Canadians are still shocked by what’s happened in the markets over the past couple of years. They’re more timid about making new investment decisions,” says Alain Giguere, president of the Montreal-based CROP.

The CROP survey revealed that only 19% of Canadian investors are still willing to take risks with investments, that number is down from 33% in 1996. The number of Canadians who think of themselves as risk-adverse has grown to 43% from 27% in 1996.

Canadian investors are also looking more to their advisors for financial planning help. Those who were willing to make their own investment decisions has decreased to 27% from 44% in 1996. Those who want financial advice has increased to 35% from 20%.

“Some major trends that we’ve found is that while investors are more willing to seek financial help, advisors need to rebuild investor confidence. What advisors are selling to clients is peace of mind and products that will provide financial autonomy. Client’s want empathetic advice,” he says.

Research from the survey also shows that indicators are now positive for a moderate rebound in the markets, which means it may be a good time for advisors to talk to clients about investing again.

“Even though many investors have been burned in the past 30 months and become more adverse to risk, now is definitely a good time to be getting back into the markets. While we don’t see a major boom period ahead we do see solid and steady recovery over the near term.

While Canadians may want to put some of their money away, many are deciding to spend the cash they have. Those inclined to spending their available capital on entertainment such as travel and leisure products number 34%, that number was only 21% in 1996.