FOR IMMEDIATE RELEASE
Nov.16, 2020

Canadian Securities Administrators 2020 Investor Index:
The Manitoba Numbers

Manitobans listening to advisors, but still falling for frauds

Winnipeg – Released as part of Financial Literacy Month, a new survey conducted for the Canadian Securities Administrators (CSA) and the Manitoba Securities Commission (MSC) shows Manitobans investors are more likely to work with a financial adviser than any other Canadians.

Conversely, Manitobans are still highly susceptible to investment fraud, and are not practicing due diligence when it comes to the professionals they trust.

The 2020 CSA Investor Index and the Manitoba Custom Report look at investor behaviour, measuring financial knowledge, how people are saving money, how people are getting investment information, the pervasiveness of fraud, and more.

“These reports provide us, and our regulatory colleagues across Canada, with invaluable data,” says David Cheop, MSC Chair and CAO. “This is information to help better inform our decisions, and in turn, better support our local markets and protect the public. I’m glad that Manitoba investors see the value of getting expert advice from registered financial advisers, but very simply, we have to do better when it comes to checking the credentials of the people we trust with our financial futures.”

“We could save millions in financial hardship for victims and damage to our economy by just following a few simple rules of thumb to insulate ourselves from bad actors.”

According to the 2020 report, one in five Manitobans has been targeted by fraud – 21 per cent on par with 18 per cent nationally. Three per cent say they’ve actually invested in what turned out to be a fraud – down slightly from five per cent in 2017, and corresponding to the national average of four per cent. A majority of Manitobans surveyed—67 per cent—answered incorrectly on an important question about the warning signs of fraud.

Just one in four investors takes the time to check their adviser’s registration and background – 23 per cent in Manitoba and 33 per cent nationally. This is down from 27 per cent in 2017 and 29 per cent in 2012.

“It’s concerning to see this downward trend,” says Ainsley Cunningham, Manager of Education and Communications at MSC. “We cannot say this strongly enough–checking your adviser’s registration status is one of *the* most important things you can do to protect yourself from fraud. The majority of fraud we see involves unregistered people and companies. You can very quickly and easily check the registration status of their financial adviser, or any other individuals or companies dealing with investments, at aretheyregistered.ca.”

In 2019, the Agency introduced MoneySmart Manitoba, an initiative to help improve overall financial education in the province, including fraud awareness.

“November is Financial Literacy Month in Canada,” says Cunningham, “and fraud prevention is one of the topics we focus on this month. During the COVID crisis, we’ve seen an even higher prevalence of fraud attempts this year as, unfortunately, emergency situations often bring scammers out of the woodwork.”

“Throughout the month, we’re welcoming Manitobans to engage with us with their questions and concerns via social media. Good practices stem from good conversations, so we encourage families to talk about financial issues, including fraud, this month. Follow MoneySmart on Facebook and Twitter with the hashtag #talkingfamilies, and let us know what you think.”

For the 2020 CSA Investor Index, Innovative Research Group interviewed 7,537 Canadian adults online between August and October 2020. The Manitoba Custom Report commissioned by MSC surveyed 537 Manitobans to ascertain more accurate local results. Participants were interviewed in both English and French.

The 2020 CSA Investor Index report is available in both English and French, while the Manitoba Custom Report is available at mbsecurities.ca.

The Manitoba Securities Commission is a division of the Manitoba Financial Services Agency, a Special Operating Agency of the Government of Manitoba that protects investors and promotes fair and efficient capital markets throughout the province.

The CSA, the council of securities regulators of Canada’s provinces and territories, coordinates and harmonizes regulation for the Canadian capital markets.

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