Investor education

Investor education is a term used to describe programs and information to help individuals make informed investment decisions.

Studies and Research

In 2006,Canadian securities regulators commissioned two national investor surveys to gauge people’s knowledge and experience with investments and fraud. The results from both studies demonstrated there is a need better to educate and inform investors about capital markets and investment fraud. Education in this area is particularly important as investors take on more risk and responsibility of managing their retirement savings, and a large baby boomer population enters the retirement years across North America.

In 2005, The British Columbia Securities Commission (BCSC) funded the Eron Mortgage Study. It was the first systematic study of a single investment fraud, focusing on more than 2,200 Eron Mortgage investors. Among other things, the report identified that investors approaching retirement without adequate resources and affluent middle-aged men were vulnerable to investment fraud. The report suggests investor education will become even more important as the baby boomer generation enters retirement.

Other regulators and self-regulatory organizations in the U.S., U.K. and Australia have also funded investor education studies. The Organization for Economic Co-operation and Development (OECD) says there is much to do and learn about financial education programs. In a 2005 report, it called for increased awareness to emphasize the need for financial literacy among all age groups and income levels.

See also

• Canadian Securities Administrators

• British Columbia Securities Commission
• Canadian Securities Administrators
• Ontario Securities Commission
• Autorité des marchés financiers (Québec)
• North American Securities Administrators Association
• United States Securities and Exchange Commission (SEC)
• Financial Services Authority