One of the many things that you often hear serious investors moan about is the many regulations they have to comply with. Many investors around the world believe that a free market is better for profits. However, Canadian investors are more wary about the idea.
A recent study by the Investment Industry Regulatory Organization of Canada (IIROC), showed that 87 percent of active Canadian investors feel that it is better to have investment advice from a regulated firm or individual. The survey was sent out to 2,000 investors and had some pretty interesting results.
Regulators around the world are looking to tighten their financial regulations and be more stringent. This trend has been seen across Europe and Australia and the result is that many brokers and firms are moving out and looking for greener pastures. North America has not seen that much change though. This is because the market is already heavily regulated. Many investors are happy about that, believing that the regulations ensure the safety of their investments.
The survey also showed that 67 percent of aspiring Canadian investors think that any investment advice should come from parties who are fully comply with all proper regulations.
Kathy Engle, IIROC’s Vice-President of Strategy said the survey showed that investors in Canada have faith in the investment market and are confident in Canada’s regulatory environment.
Key Findings
Besides the belief in proper regulation, the study also revealed some interesting details. For one, 75 percent of current investors are happy with the regulation that Canada’s investment industry has.
With the rise of automated online tips about investing, the perception on them is a bit negative. The survey showed that 31 percent of current investors and 44 percent of aspiring investors think that these investment advice websites and services are not fully regulated. They prefer a dealer in real life to advise them on their investments.
The survey is important since it allows Canadian regulators to address investor concerns and to attract more investors. The survey covered a wide market and took into account Canadians investing from all backgrounds, which means it is a good cross-section of the current beliefs in the investing community.
The IIROC is doing its best to keep the Canadian market safe. The industry is pretty robust, with over 170 investment firms employing more than 29,000 people. With more knowledge about what Canadians need in their investments, the IIROC will be able to tailor their responses properly.
