Gracey <kgracey@bcsc.bc.ca>
Subject: News release: BCSC study finds millennials understand investment feesbetter under CRM2, but are the least loy
--->al of investors when it comes toadvisor relationships
PLAIN TEXT:
BCSC study finds millennials understand investment fees better under CRM2, but are the least loyal of investors when i
--->t comes to advisor relationships
Vancouver - A four-part, longitudinal study commissioned by the British Columbia Securities Commission (BCSC) shows th
--->at millennials' general understanding of investment fees grew as a result of charges and compensation reports required
---> under securities rules known as the Client Relationship Model, Phase 2 (CRM2). But millennials were also the most lik
--->ely of all generations to change their advisor or firm during the study period.
Young people in B.C. between the ages of 18 and 34 were more likely than older generations to recall both their 2017 a
--->nd 2018 fee reports over the course of the 16-month study (62 per cent did so, compared to 53 per cent of those over 3
--->5). The study showed that 76 per cent of male millennials and 74 per cent of female millennials agreed the CRM2 fee di
--->sclosure reports provide information they need to better understand the fees they pay for the investments they hold. A
--->fter receiving their 2018 CRM2 reports, male millennials were by far the most likely (60 per cent compared to 31 per c
--->ent overall) to report they discussed the fee report with their investment advisor.
Millennials' general understanding of investment fees has improved since the first CRM2 fee disclosure reports were se
--->nt out in 2016. Half of all millennials in the study (49 per cent) saw some long-term improvement in their general und
--->erstanding of investment fees.
"Like Baby Boomers, millennials represent a large demographic that can influence the world economy. As millennials beg
--->in to make more money and think about investing it, we want them to be knowledgeable and, therefore, empowered to make
---> good investment decisions that will set them up to have good investment outcomes," said Pamela McDonald, Director of
--->Communications at the BCSC.
Since the first part of the study, millennials have shown they are more likely than other generations to make changes
--->to how they invest. Although they were no more likely than other age groups to take any new actions after receiving th
--->e fee reports, those millennials who did act were more likely than older generations to change their advisor or firm.
--->Twenty-eight per cent of millennials changed their advisor or firm during the study period, compared to 20 per cent of
---> those 35-54 and only 7 per cent of those 55+.
"Millennials, like all investors, have choices when it comes to their investments," said McDonald. "This longitudinal
--->study shows that they are using their CRM2 reports to inform those choices."
The BCSC has tools to help millennial investors improve their investment fee knowledge, such as a Fee Calculator, on t
--->he Take a Look at Your Investment Fees<https://www.investright.org/know-about-investment-fees/> page on InvestRight.or
--->g<https://www.investright.org/>.
The BCSC commissioned the four-part longitudinal Investor Readiness for Better Investing study to measure how well B.C
--->. investors understand the fees they pay and how the fee disclosure reports affected investor knowledge, attitudes and
---> behaviour. Canadian investors began receiving the fee disclosure reports in January 2017. The BCSC's four-part longit
--->udinal study tracked investor knowledge and behaviour before and after receiving the new reports. The study only looke
--->d at investors who work with an investment advisor. The study was conducted by Innovative Research Group Inc. from Nov
--->ember 2016 to March 2018. For more information on the research findings, visit the BCSC's investor education website I
--->nvestRight.org<https://www.investright.org/take-a-look-at-your-investment-fees/>.
About the British Columbia Securities Commission (www.bcsc.bc.ca<http://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 pr
--->omote 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
- 30 -
Media Contact:
Andrew Poon
604-899-6880
Public inquiries:
604-899-6854 or 1-800-373-6393 (toll free)
inquiries@bcsc.bc.ca<mailto:inquiries@bcsc.bc.ca>
Learn how to protect yourself and become a more informed investor at www.investright.org<http://www.investright.org>
________________________________
If this message is not meant for you, do not use it - please let us know, and then delete it. We try hard to keep our
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<p class="MsoNormal" align="center" style="margin-bottom:0in;margin-bottom:.0001pt;text-align:center">
<b>BCSC study finds millennials understand investment fees better under CRM2, but are the least loyal of investors whe
--->n it comes to advisor relationships
</b><b><span lang="EN-GB"><o:p></o:p></span></b></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt"><b><span lang="EN-GB"><o:p> </o:p></span></b
--->></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt"><b><span lang="EN-CA">Vancouver</span></b><span l
--->ang="EN-CA"> - A four-part, longitudinal study commissioned by the British Columbia Securities Commission (BCSC) shows
---> that millennials' general
understanding of investment fees grew as a result of charges and compensation reports required under securities rules
---> known as the Client Relationship Model, Phase 2 (CRM2). But millennials were also the most likely of all generations
--->to change their advisor
or firm during the study period. <o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt"><span lang="EN-CA"><o:p> </o:p></span></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt"><span lang="EN-CA">Young people in B.C. between t
--->he ages of 18 and 34 were more likely than older generations to recall both their 2017 and 2018 fee reports over the c
--->ourse of the 16-month
study (62 per cent did so, compared to 53 per cent of those over 35). The study showed that 76 per cent of male mille
--->nnials and 74 per cent of female millennials agreed the CRM2 fee disclosure reports provide information they need to b
--->etter understand the
fees they pay for the investments they hold. After receiving their 2018 CRM2 reports, male millennials were by far th
--->e most likely (60 per cent compared to 31 per cent overall) to report they discussed the fee report with their investm
--->ent advisor.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt"><span lang="EN-CA"><o:p> </o:p></span></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt"><span lang="EN-CA">Millennials' general understan
--->ding of investment fees has improved since the first CRM2 fee disclosure reports were sent out in 2016. Half of all mi
--->llennials in the study
(49</span><span class="MsoCommentReference"><span style="font-size:8.0pt"> per cent</span></span><span lang="EN-CA">)
---> saw some long-term improvement in their general understanding of investment fees.
<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt"><span lang="EN-CA"><o:p> </o:p></span></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt"><span lang="EN-CA">"Like Baby Boomers, millennial
--->s represent a large demographic that can influence the world economy. As millennials begin to make more money and thin
--->k about investing it,
we want them to be knowledgeable and, therefore, empowered to make good investment decisions that will set them up to
---> have good investment outcomes," said Pamela McDonald, Director of Communications at the BCSC.
<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt"><span lang="EN-CA"><o:p> </o:p></span></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt"><span lang="EN-CA">Since the first part of the st
--->udy,
</span>millennials have shown they are more likely than other generations to make changes to how they invest. Although
---> they were no more likely than other age groups to take any
<i>new</i> actions after receiving the fee reports, those millennials who did act were more likely than older generati
--->ons to change their advisor or firm. Twenty-eight per cent of millennials changed their advisor or firm during the stu
--->dy period, compared to
20 per cent of those 35-54 and only 7 per cent of those 55+. <o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt"><o:p> </o:p></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt"><span lang="EN-CA">"Millennials, like all investo
--->rs, have choices when it comes to their investments," said McDonald. "This longitudinal study shows that they are usin
--->g their CRM2 reports
to inform those choices."<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt"><span lang="EN-CA"><o:p> </o:p></span></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt"><span lang="EN-CA">The BCSC has tools to help mil
--->lennial investors improve their investment fee knowledge, such as a Fee Calculator, on the
</span><a href="https://www.investright.org/know-about-investment-fees/"><span lang="EN-CA">Take a Look at Your Invest
--->ment Fees</span></a><span lang="EN-CA"> page on
</span><a href="https://www.investright.org/"><span lang="EN-CA">InvestRight.org</span></a><span class="MsoHyperlink">
---><span lang="EN-CA">.</span></span><span lang="EN-CA"><o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt"><span lang="EN-CA"><o:p> </o:p></span></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt"><span lang="EN-CA">The BCSC commissioned the four
--->-part longitudinal
<i>Investor Readiness for Better Investing</i> study to measure how well B.C. investors understand the fees they pay a
--->nd how the fee disclosure reports affected investor knowledge, attitudes and behaviour. Canadian investors began recei
--->ving the fee disclosure
reports in January 2017. </span>The BCSC's four-part longitudinal study tracked investor knowledge and behaviour befo
--->re and after receiving the new reports. The study only looked at investors who work with an investment advisor.
<span lang="EN-CA">The study </span>was conducted by Innovative Research Group Inc. from November 2016 to March 2018<s
--->pan lang="EN-CA">. For more information on the research findings, visit the BCSC's investor education website
</span><a href="https://www.investright.org/take-a-look-at-your-investment-fees/"><span lang="EN-CA">InvestRight.org</
--->span></a>.<o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt"><span lang="EN-CA"><o:p> </o:p></span></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt"><b><u><span lang="EN-GB">About the British Columb
--->ia Securities Commission (</span></u></b><a href="http://www.bcsc.bc.ca"><b><span lang="EN-GB">www.bcsc.bc.ca</span></
--->b></a><b><u><span lang="EN-GB">)
<o:p></o:p></span></u></b></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt"><span lang="EN-GB"><o:p> </o:p></span></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt"><span lang="EN-GB">The British Columbia Securitie
--->s Commission is the independent provincial government agency responsible for regulating capital markets in British Col
--->umbia through the administration
of the <i>Securities Act</i>. Our mission is to protect and promote the public interest by fostering:<o:p></o:p></spa
--->n></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt"><span lang="EN-GB"><o:p> </o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:
--->.0001pt;text-indent:-.25in;mso-list:l0 level1 lfo2;background:white">
<![if !supportLists]><span lang="EN" style="font-size:10.0pt;font-family:Symbol"><span style="mso-list:Ignore">·
--->;<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span lang="EN">A securities market that is fair and warrants public confidence
<o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:
--->.0001pt;text-indent:-.25in;mso-list:l0 level1 lfo2;background:white">
<![if !supportLists]><span lang="EN" style="font-size:10.0pt;font-family:Symbol"><span style="mso-list:Ignore">·
--->;<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span lang="EN">A dynamic and competitive securities industry that provides investment
--->opportunities and access to capital
<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt"><span lang="EN-GB"><o:p> </o:p></span></p>
<p class="MsoNormal" align="center" style="margin-bottom:0in;margin-bottom:.0001pt;text-align:center">
<span lang="EN-GB">- 30 -<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt"><span lang="EN-GB"><o:p> </o:p></span></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt"><span lang="EN-GB">Media Contact:<o:p></o:p></spa
--->n></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt"><span lang="EN-GB">Andrew Poon<br>
604-899-6880 <o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt"><span lang="EN-GB"><o:p> </o:p></span></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt"><span lang="EN-GB">Public inquiries:<br>
604-899-6854 or 1-800-373-6393 (toll free)<br>
</span><a href="mailto:inquiries@bcsc.bc.ca"><span lang="EN-GB">inquiries@bcsc.bc.ca</span></a><span lang="EN-GB"><o:p
--->></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt"><span lang="EN-GB"><o:p> </o:p></span></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt"><span lang="EN-GB">Learn how to protect yourself
--->and become a more informed investor at </span><a href="http://www.investright.org"><span lang="EN-GB">www.investr
--->ight.org</span></a>
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
</div>
<br>
<hr>
<font face="Arial" color="Gray" size="1"><br>
If this message is not meant for you, do not use it - please let us know, and then delete it. We try hard to keep our
--->messages and attachments free of viruses and other malicious programs, but are not liable if our precautions don't pre
--->vent their spread.<br>
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