Access to reliable investment information is key as nearly a
quarter of all investors are confronted by potential scams.
CALGARY,
AB, June 27, 2024 /CNW/ - A national survey
commissioned by the Canadian Securities Administrators (CSA) found
that 23 per cent of Canadians report encountering possible
fraudulent investments, an increase of five percentage points since
2020.
"How Canadians research and manage their investments continues
to change, with more investors seeking information from social
media and turning to do-it-yourself (DIY) investing," said
Stan Magidson, CSA Chair and CEO of
the Alberta Securities Commission. "Surveying investor behaviour on
a regular basis allows the CSA and its member jurisdictions to
enhance existing investor education tools and develop targeted new
programs to help Canadians invest wisely and
avoid fraud."
The 2024 CSA Investor Index provides valuable insight into
Canadian investing trends and fraud in an
ever-evolving financial landscape. The long-running survey, first
published in 2006, tracks key measurements, including investor
behaviour, knowledge, confidence, attitudes towards risk, and
incidences of investment fraud.
More findings include:
- More Canadians are using social media for investment
information: Investors who use social media for investment
information increased 18 per cent since 2020 to 53 per cent.
Notably, 82 per cent of 18- to 24-year-old investors use social
media, with YouTube, Instagram and TikTok being the most popular
choices in this age group. Moreover, 46 per cent of Canadians
report encountering investment opportunities on social media, which
is a 17 per cent increase from 2020, and is also especially common
among younger age groups.
- Nearly half of investors say they DIY invest: Forty-five
per cent of investors say they have a self-directed account, and 30
per cent of these DIY investors first opened that account within
the last two years.
- Fewer investors report having a financial advisor in
2024: Sixty-one per cent of investors said they currently work
with a financial advisor, down eight per cent from 2020. The
largest drop was for investors under the age of 45 and those with
portfolios less than $100,000.
- Investment fraud trends upward for younger
investors: While investment fraud has decreased in
older demographics since 2006, reported fraud doubled
with almost all other age groups. Younger investors 18-24 years old
saw the highest reported increase from 0.4% to 5%.
The 2024 CSA Investor Index survey was conducted in March 2024 by Innovative Research Group. It
consisted of a representative sample of 7,215 Canadian adults,
weighted by age, gender, province, and education using 2021
Statistics Canada census data to reflect the actual demographic
composition of the population. Additionally, weighting targets were
set by investment portfolio size and type of investment accounts,
using data from Statistics Canada's Survey of Financial Security,
to accurately reflect the population of Canadian investors within
the sample.
The 2024 CSA Investor Index is available on the CSA
website.
The CSA website has a variety of tools and resources to
help investors avoid fraud and verify the registration
of any individual, firm or platform they plan to work with.
Canadian investors are encouraged to visit the site to learn more
about making informed investment decisions.
The CSA, the council of the securities regulators of
Canada's provinces and
territories, co-ordinates and harmonizes regulation for the
Canadian capital markets.
For media inquiries, please contact:
Ilana Kelemen
Canadian Securities Administrators
media@acvm-csa.ca
For investor inquiries, please contact your local
securities regulator.
SOURCE Canadian Securities Administrators