VANCOUVER (CP) - Most Canadian investors know what they should be doing, but a majority still aren't doing it when it comes to their investments and financial planning - making them more vulnerable to fraud, a new study suggested Tuesday.
The report prepared for the Canadian Securities Administrators found that one-in-three of those surveyed reported having been approached with a fraudulent investment opportunity.
But that while 86 per cent understand that suspicious investment opportunities should be reported, only 14 per cent actually do so.
The study also found that 88 per cent of Canadians believe a financial plan is important, but 58 per cent don't have one and that while 92 per cent agreed on the importance of doing independent research before investing, 49 per cent did not personally research their most recent investment.
"Investor education is becoming increasingly important because it is clear that no regulator will ever have the capacity to stop all fraud," Doug Hyndman, chairman of the B.C. Securities Commission.
"The results of the CSA Investor Index show the serious nature of this problem, and the need for regulators from across Canada to come together to give investors the tools they need to protect themselves."
As part of its campaign, the B.C. regulator launched a red flag program to alert investors to the most common fraudulent sales pitches and expanded its efforts to combat scams that prey on identifiable groups.
In Ontario, the Ontario Securities Commission has launched a campaign Tuesday to help educate investors about the need to do their research before putting their money somewhere.
"Taking the time to do some research before investing your money is time well spent," said OSC chairman David Wilson.
"Our goal is to help Ontarians take a more active role in their financial affairs and become better equipped to protect their money."
The report included a 2,000 person telephone survey as well as a 5,568 person online study to develop a profile of Canadian investor segments.
