OSC INVESTOR KNOWLEDGE STUDY
The OSC’s Investor Office commissioned Investor Knowledge Study found that Canada has amongst the highest financial literary rates among OECD Countries. Overall, 68% of Canadians answered the core OECD financial literacy questions correctly, with self-directed investors being the most knowledgeable (73%), followed by investors working with an advisor (66%) and investors using a robo-advisor (65%). Knowledge of Registered Accounts was the highest (69%) and understanding of Investment Costs the lowest (39%). However, within each area tested there are significant differences in knowledge. For example, within Registered Accounts, investors knowledge of TFSAs and RRSP was very high at 89% and 82% respectively, however, understanding of RESPs was significantly lower at 38%.
The Investor Knowledge Study also confirmed a “better than average effect” whereby investors perceived their financial literacy to be greater (30% say they have above average knowledge) than their actual performance demonstrated (16% were above average based on survey results).
More information about the Investor Knowledge Study can be found here.