BC Report Warns Of Gap Between Investor Attitudes And Behaviours Ahead Of RRSP Deadline - Recent BCSC Study Shows Trust In An Advisor May Keep Investors From Due Diligence

This RRSP season, the British Columbia Securities Commission (BCSC) is encouraging investors to make smarter decisions and learn more about the role they play when working with an investment advisor. The BCSC’s message is prompted by findings from research it commissioned showing that while most British Columbians agree they have responsibilities when it comes to investing, many neglect those responsibilities. According to the study, 43 per cent of British Columbians 35 years and older have investments, and 27 per cent of them invest through an advisor.

The National Smarter Investor Study, released by the BCSC late last year, paints a contradictory picture of investor attitudes and behaviours in the province. While 49 per cent of respondents felt researching investments recommended by their advisor was their responsibility, only 22 per cent said they actually did their research. And while 74 per cent believed they were responsible for reading their statements, only 62 per cent always read them.

“We’re encouraged to see how many investors acknowledge their responsibilities, but we need to bridge the gap between what people know they should do and what they actually do,” said Pamela McDonald, Director, Communications and Education, BCSC. “RRSP season is the perfect time of year to remind investors of their responsibilities, because investing is top of mind.”

The Smarter Investor Study BC Report released today shows that behaviours also vary regionally throughout the province. Respondents from Vancouver, Richmond, the North Shore, and Lower Mainland suburbs were the least likely to consistently do the right things when considering an investment, such as referring to a financial plan or waiting a day before investing their money. Residents from Vancouver Island were the most likely to exercise proper investment behaviour.

Another key finding from the BC Report was the role trust plays in the client-advisor relationship: 90 per cent of respondents reported a strong level of trust in their advisor, which may help explain some of the behaviour gaps. For example: