VANCOUVER, Oct. 17, 2016 /CNW/ - The British Columbia Securities Commission (BCSC) today launched its new Take a Look campaign, encouraging British Columbians to pay attention to the fees they pay for investment products and advice. The campaign stems from new securities rules that now require investment advisors to give their clients more detailed information about fees and charges.
"Thanks to these new rules, information about investment fees will be more transparent and easier to understand," said Brenda Leong, BCSC Chair and CEO. "We know from our research that many investors don't fully understand fees and some just don't want to talk about them."
The focus of the Take a Look campaign is a short online quiz to help investors understand investment fees. It includes a unique new fee calculator that makes it easy and fun for investors to compare different fees and their impact on investment returns. The BCSC has also released a downloadable fee guide on its newly updated investor website InvestRight.org.
According to the February 2016 Smarter Investor Study: B.C. Report, 23 per cent of B.C. investors do not know how their advisor is compensated. Focus groups conducted by the BCSC also revealed that many investors do not understand the connection between fees and net return, and some investors even say they prefer not to know what they pay their advisor in fees.
"Fees have the power to impact the overall return of an investment over time," said Leong. "We've launched this campaign to prepare investors for the new fee information that's coming, and to encourage investors to talk to their advisors so they'll be able to make more informed investment decisions."
The new rules are part of the Client Relationship Model Phase 2 (CRM2) and came into effect July 15, 2016. Investors can expect to receive more information about fees and performance from their advisors, including an annual report on charges and compensation. Advisors have until July 2017 to begin providing investors with annual charges and compensation reports.
The Smarter Investor Study: B.C. Report was part of the National Smarter Investor Study, conducted for the BCSC in 2015 by Innovative Research Group. Both reports are also available on InvestRight.org.
About the British Columbia Securities Commission (www.bcsc.bc.ca)
The British Columbia Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:
- A securities market that is fair and warrants public confidence
- A dynamic and competitive securities industry that provides investment opportunities and access to capital
Learn how to protect yourself and become a more informed investor at www.investright.org
SOURCE British Columbia Securities Commission
For further information: Media Contact: Alison Walker, 604-899-6713; Public inquiries: 604-899-6854 or 1-800-373-6393 (toll free), [email protected]