Investor education month kicks off with new Web tools and quizzes

(April 3, 2003) Canada’s securities regulators have introduced several new Web-based tools aimed at investors as part of Investor Education Month, an annual campaign to promote investor awareness and financial literacy.

The Ontario Securities Commission’s Investor Education Web site has added a section on working with financial advisors, offering a checklist on what investors should look for when choosing an advisor. The page also includes information on advisor registration and education.

Also new to the Investor Education site this year is a section on investment frauds and scams, outlining current types of scams in the marketplace, including tips for investors to protect themselves.

“These two new features provide valuable information on timely topics from an objective and trusted source: the securities industry regulators,” says Terri Williams, president of the OSC’s Investor Education Fund.

Paid for by OSC enforcement settlements, the Investor Education Fund was established in 2000 to develop and support investor education initiatives.

Last year, the Canadian Securities Administrators promoted a “Test Your Financial I.Q.” contest. Youth aged 14 to 18 were invited to submit an essay outlining how they would invest $2,500, taking into account risk tolerance, time horizon and financial goals. The contest attracted 400 entries from across the country.

Sarah Wong, 16, of Vancouver won the B.C. contest. Wong says her parents and grandparents taught her from an early age to invest in low-risk, capital-appreciating investments.

“We want young Canadians to learn about the various investment products available and to think about why becoming educated about investing is so important to their future financial well-being,” says British Columbia Securities Commission chair Doug Hyndman. “Sarah’s essay is a fine example of a young person who is doing just that.”

The national prize will be announced later this month.

The CSA is also launching an investment fraud awareness quiz, in partnership with the North American Securities Administrators Association. The online quiz is designed to test investor knowledge of investment scams and frauds, and encourage them to watch out for telltale signs. The quiz will be available April 28 on the CSA Web site.

Filed by Doug Watt, Advisor.ca, dwatt@advisor.ca