CIRO's Inaugural Investor Survey Highlights Canadian Investors' Financial Concerns and Sources of Advice

Rising cost of living and inflation identified as primary concerns

TORONTO, June 4, 2024 /CNW/ - The Canadian Investment Regulatory Organization (CIRO) issued its first Investor Survey, aimed at gathering crucial insights into the current financial concerns and trends affecting Canadian investors.

"This survey provides invaluable insights into the evolving landscape of investor concerns and behaviors in Canada," said Karen McGuinness, Senior Vice-President, Office of the Investor, Member Intake, and Innovation at CIRO. "By understanding these trends, CIRO is better positioned to support investors in navigating financial challenges and making informed decisions. Our goal is to enhance investor confidence and ensure they have access to reliable, regulated financial advice."

One of the major findings from the survey highlights that the rising cost of living is significantly impacting some Canadian investors' confidence in achieving their financial goals. Only 21% of Canadians reported feeling very confident about meeting their financial objectives. Among those who reported not feeling confident, 66% cited inflation and the rising cost of living as one of the main things holding them back. Similarly, for those investors who reported investing less in the past year, inflation and the rising cost of living was cited as the primary reason for the change. In addition, 28% of Canadians and 40% of 18- to 34-year-olds reported they have had to borrow money to cover daily expenses within the last year. The survey also reveals that approximately 71% of investors working with a financial advisor have discussed the impact of inflation on their investments. 

Additionally, a number of Canadians are turning to financial influencers (finfluencers) and social media for financial guidance. About 28% of Canadians indicated they use social media, forums, or finfluencers for financial information and advice. Of these, 44% believe the information they receive from these sources is equally valuable as that from a traditional advisor, while 12% find it more valuable, and only 17% consider it less valuable.

Earlier this year, CIRO's Office of the Investor introduced a comprehensive Blueprint that focuses on five key areas designed to address investor needs and emerging market trends. Building on this initiative, the newly launched survey, conducted in collaboration with Innovative Research Group,  supports CIRO's strategic objective to understand, inform and protect investors.

As a pan-Canadian regulator, CIRO emphasizes the importance of working with a registered financial advisor for investment advice. Investors are encouraged to use CIRO's Advisor Report to verify if an advisor is currently employed by a CIRO-regulated investment dealer.

This survey marks the beginning of a series of efforts by CIRO to provide more detailed insights and updates on investor concerns and trends.

For more information about CIRO's Office of the Investor, and the survey, visit ciro.ca/office-investor.

About CIRO

The Canadian Investment Regulatory Organization (CIRO) is the national self-regulatory organization that oversees all investment dealers, mutual fund dealers and trading activity on Canada's debt and equity marketplaces. CIRO is committed to the protection of investors, providing efficient and consistent regulation, and building Canadians' trust in financial regulation and the people managing their investments. For more information, visit www.ciro.ca.

SOURCE Canadian Investment Regulatory Organization (CIRO)

For media inquiries, please contact: Joanna Nicholson, Manager, Corporate Communications and Public Affairs, Canadian Investment Regulatory Organization, [email protected]