Aspiring investors aren’t confident that the investment industry is properly regulated, finds a survey from the Investment Industry Regulatory Organization of Canada (IIROC).
In partnership with The Strategic Counsel, IIROC surveyed more than 2,000 current and aspiring investors. Eighty-seven per cent of current investors and 67% of aspiring investors said it’s important for their advice to come from a regulated firm or individual.
The majority of current investors (76%) were confident that the investment industry in Canada is properly regulated — but less than half (48%) of aspiring investors share that confidence.
Additionally, both current and aspiring investors were more skeptical of online advice being properly regulated.
The survey found that 31% of current investors and 44% of aspiring investors believe online advice has less regulatory protections than advice received from a human. Senior investors (those aged 65 and older) were the most skeptical, with 43% saying advice provided in person is more heavily regulated.
“It is encouraging that most Canadian investors are confident that the investment industry in Canada is properly regulated, although it is concerning that those who are not yet investing are far less confident,” Kathy Engle, IIROC’s vice president of strategy, said in a statement.
“The more we understand Canadians’ perceptions of regulation in the investment industry, the better we can address concerns, helping investors gain better access to the advice they need to achieve their financial goals.”