Report identifies techniques dealers and advisers can use to encourage older clients to provide information for enhanced investor protection measures.
TORONTO – The Ontario Securities Commission (OSC) today published OSC Staff Notice 11-790, Protecting Aging Investors through Behavioural Insights, which identifies behaviourally-informed tactics to successfully collect Trusted Contact Person (TCP) information and protect older investors.
The research found that a form, designed using behavioural techniques, resulted in a 23 per cent increase in the likelihood that an investor would appoint a TCP.
The Canadian Securities Administrators previously proposed amendments that will require registrants take reasonable steps to obtain the name and contact information of a TCP from their clients, as well as the client’s written consent to contact the TCP in specified circumstances.
“Our research report provides registrants with practical ways to increase the likelihood that investors will appoint a Trusted Contact Person to help protect their investments,” said Tyler Fleming, Director of the Investor Office at the OSC. “Based on behavioural insights, we know small design changes to administrative forms can nudge more investors to take advantage of these protective measures.”
The OSC encourages registrants to review the research findings and consider testing and, if proven effective, integrating the tactics suggested in the report into their current practices.
The OSC remains committed to working towards a stronger and more secure financial future for all Ontario seniors. It looks forward to engaging with investors, registered dealers and advisers, their individual registrants and other stakeholders with respect to the research findings and its broader work to improve the investor experience.
The research findings are available online at InvestorOffice.ca.
The research report was prepared by the BEworks in collaboration with the OSC.
The mandate of the OSC is to provide protection to investors from unfair, improper or fraudulent practices, to foster fair and efficient capital markets and confidence in capital markets, and to contribute to the stability of the financial system and the reduction of systemic risk. Investors are urged to check the registration of any persons or company offering an investment opportunity and to review the OSC investor materials available at http://www.osc.gov.on.ca.
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Source: Ontario Securities Commission